Acrylonitrile demand off, prices flat

Chemical monomer isn’t selling just now

by Tom Stundza -- Purchasing, 7/16/2008 11:11:00 AM

After rising this spring, acrylonitrile prices are stuck at 88¢ as the spot market has been marked by a lack of business. Acrylonitrile is used principally as a monomer in the manufacture of synthetic polymers, especially polyacrylonitrile which comprises acrylic fibers. Acrylic fibers are, among other uses, precursor for carbon fibers.

SNo spot business was heard done in the US, In factubscription news service ICISpricing.com reports that due to slowing demand, there has been a rash of production-cut announcements as acrylonitrile suppliers face rising feedstock costs, especially for propylene, at the same time as slowing demand. Chemical-grade propylene and polymer-grade propylene contracts for July deliveries appear to be increasing by 10¢ to 84.5¢/lb. Upshot: INEOS has cut U.S. production by 30% effective while Japanese major Asahi Kasei plans to start decreasing production by the end of July.