Market Overview: This week, overall, the supply-demand imbalance has not eased, and the market has hit a bottom and is waiting to see, consolidating at a low level. As of March 21st, the mainstream negotiation for container self pickup in East China ports is around 8600-8700 yuan/ton, a decrease of 100 yuan/ton from last week’s high price. Short distance delivery in Shandong market is around 8600-8700 yuan/ton, a decrease of 100 yuan/ton from last week’s high price.
| Gamma-PGA (gamma polyglutamic acid) |
On the supply side: Some facilities in East China have reduced their load or undergone maintenance, but at the same time, there are also plans to launch new production capacity. Overall, the supply-demand contradiction has not yet eased.
High inventory level: Overall supply still shows surplus. According to statistics, as of March 20th, the inventory level of domestic acrylonitrile factories was around 52000 tons, unchanged from last week, and the inventory was at a high level.
In terms of demand, the capacity utilization rate of major downstream industries of acrylonitrile has decreased, with ABS capacity utilization rate at 71.5%, a decrease of 1.5% from last week. Raw materials are purchased on demand, and overall demand fluctuations are limited.
Market forecast: Currently, the acrylonitrile market is in a stalemate and waiting, and there is still uncertainty in the short-term supply changes, including the reduction of existing equipment production and the introduction of new production capacity. However, the overall demand fluctuation is limited, so the market fundamentals may be maintained, and prices are unlikely to have significant fluctuations.
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