Weakened Demand For Acrylonitrile

During the Spring Festival, China's acrylonitrile market was basically closed, and there was no obvious delivery of the market. At the same time, acrylonitrile producers maintained stable production, but the delivery rhythm slowed down due to logistics and transportation restrictions.

During the festival, the domestic acrylonitrile market was closed, and no consultation was heard in the market. Most acrylonitrile plants officially went to work in February 3rd, and the overall quotations of manufacturers in early February did not change much from the end of last month. In addition, there is no new price in the acrylonitrile spot market. The mainstream traders said that the information was unclear. Therefore, the implementation of the contract was the main and spot trading was not heard. At present, the evaluation price of the acrylonitrile main market was maintained at 10600-10700 yuan / ton, and there was no deal. In addition, the external market was also calm during the holiday period. The CFR Far East market assessment price was maintained at US $1435 / ton, but it is reported that in the field buying is gradually declining.

At present, the effective production capacity of acrylonitrile in China is 2 million 249 thousand tons / year, and the production starts steadily during the Spring Festival, with an average operating rate of 96%, unchanged from that before the holiday. However, since the beginning of February, the 130 thousand tons of acrylonitrile plant in Shandong Hai Jiang chemical industry has stopped because of the transportation problem of by-products. Besides, the 130 thousand ton unit of Shandong's chemical industry has taken a negative load because of the transportation of raw materials and liquid ammonia. The operation rate of acrylonitrile industry has dropped by 6% to 90%, and the daily output has decreased by 468 tons to 6034 tons. In the latter stage, other manufacturers are not taking measures to limit production because of delivery or raw material problems. Acrylonitrile production is expected to decline.

Demand side, the domestic ABS enterprises started over 90% load during the Spring Festival, but due to slow delivery, some ABS factories reduced production to prevent storage.

Acrylic fiber, during the Spring Festival, Hangzhou Bay acrylic parking, other acrylic manufacturers started unchanged, the average operating rate as of January 31st was 67%. But in February 3rd, Qilu Petrochemical had four production lines due to the pressure reduction of the expansion of the warehouse. Jilin chemical fiber also indicated that the production will gradually reduce on the basis of the current 70% load, and it is estimated that the starting of the acrylic fiber industry will drop by 10% to 57%.

In the field of acrylamide, during the Spring Festival, Jiangsu nine 30 thousand tons of plant parking, is expected to return to work in February 9th, the current acrylamide enterprises started around 63%, 3% lower than before the holiday. Some factories indicated that shipments were difficult due to logistics restrictions, or the risk of storehouse was further reduced.

In February, the expected growth in supply of acrylonitrile industry will be weakened due to the production problems of Shandong Hai Jiang and other manufacturers. At the same time, the delay of terminal enterprises' return to work coupled with the Limited Logistics and transportation has also caused the main downstream factories to begin to cut production, thereby affecting the normal sale of acrylonitrile production enterprises. In contrast, the demand reduction is expected or more obvious, will also aggravate pre - Holiday expectations. It is estimated that the price of acrylonitrile will gradually decrease in February, and the barrier will be larger. But then acrylonitrile plant or homeopathic measures will be used to eliminate the deficit and reduce the cost. The price of acrylonitrile is expected to reach 9500-10000 yuan / tonne.