Declining Acrylonitrile Prices in US Market: Mid-Q4 Update
In November 2024, the Acrylonitrile market took a downward turn in the US, with prices dropping significantly compared to earlier in the fourth quarter, signaling a less optimistic market outlook.
Manufacturers in the Acrylonitrile Butadiene Styrene and Styrene Acrylonitrile sectors were slow to place orders due to reduced material consumption in the construction industry. Demand for Acrylonitrile for adhesives and sealants remained steady in construction, supported by existing stock availability. The US Bureau of Labor Statistics reported that the Producer Price Index for adhesives and sealants showed no change in October 2024 from the previous month. Challenges in the construction industry, such as labor and material shortages, continued to cause delays in projects and strain cash flows. Despite a 4.6% increase in construction spending in September, reaching USD 2,148.8 billion annually, delays hindered growth potential. Both private and public construction sectors saw only small month-on-month growth, with investments focused on highway and educational projects. The political climate added uncertainty, with former President Trump advocating for deregulation and Vice President Harris supporting policies favorable to the construction industry.
On the other hand, the demand for Natural Gas impacted Ammonia production, affecting the availability of feedstock and impacting Acrylonitrile production. Fluctuations in Propane prices and demand from downstream industries also influenced costs. The US Manufacturing PMI improved in October 2024 after hitting a 15-month low, indicating a slowdown in the contraction of manufacturing sector activity. Exports remained steady, with an increase in US exports.
As per ChemAnalyst data sources, Acrylonitrile prices settled at USD 1325/MT in Texas by the end of the week ending on November 22nd, 2024, marking a 6.5% decrease from the previous month.
Looking ahead, Acrylonitrile prices are expected to continue declining towards the end of 2024. Inventory levels are projected to rise as Asian market players deplete their stockpiles, increasing global supply. This surplus supply may lead to downward pressure on market dynamics. However, with subdued buyer activity and cautious purchasing behavior due to market uncertainty, demand for Acrylonitrile is expected to remain weak, contributing to a slow market in the short term.
