Updated to mid-November 2009
Asian market review by Helen Yan, ICIS pricing
Asian acrylonitrile (ACN) spot prices rose steadily from $1,300/tonne CFR (cost and freight) NE Asia (northeast Asia) in mid-August to $1,500/tonne CFR NE Asia in mid-November as demand outstripped supply.
Several ACN plants in Korea, Taiwan and Japan were operating at reduced rates or shut down in October and November for maintenance, limiting spot supply in Asia. However, the downstream acrylic fibre (AF) makers in China were running at full rates.
Rising feedstock propylene cost, which crossed the $1,000/tonne CFR NE Asia level in October, further boosted the ACN price. Dwindling deep-sea ACN supply from the US Gulf exacerbated the tight supply conditions in Asia.
Traders seeking ACN material had no choice but to secure spot material at $1,500/tonne CFR NE Asia for November loadings.
European market review by Mike Nash, ICIS pricing
Both spot and contract ACN prices generally firmed in Europe throughout the period, based on tight supply and rising propylene and ammonia feedstocks.
Contract prices rose from €1,365-1,385/tonne FD (free delivered) NWE (northwest Europe) throughout the period to €1,475-1,490/tonne FD NWE in September, the most significant hike coming in that month reflecting the €93/tonne hike in propylene. However, contracts began to retreat in October by €15-20/tonne due mostly to a fall in propylene. As November began, there was further talk of some relief to contract prices, with a slight fall in propylene heralding initial November settlements at a rollover or down €5/tonne.
Spot prices rose for most of the review period, from $1,300-1,320/tonne CIF (cost, insurance and freight) WE (West Europe) to a high of $1,500-1,550/tonne CIF WE in late September reflecting tight supply and strong demand, particularly in fibres. Prices briefly fell in mid-October reflecting the fall in propylene and a lack of liquidity as buyers adopted a wait-and-see attitude, unwilling to be left with ACN stocks at year end.
However, spot prices rallied as supply tightened considerably in November due to a number of planned and unplanned outages. The larger line at INEOS Nitriles’ 300,000 tonne/year Cologne, Germany, facility went down in late September for maintenance until mid-November. But the company also suffered an unexpected technical problem at its 230,000 tonne/year Sealsands plant in the UK in early November, which INEOS sources said would take at least two weeks to fix.
This exacerbated the already tight supply with plants owned by Repsol, Spain and Bourgas, Bulgaria already down on a long-term basis due to market and feedstock issues.
US market review by Ben Lefebvre, ICIS pricing
ACN prices were assessed in the US at $1,440-1,500/tonne FOB (free on board) USG (US Gulf) for export spot material and $1,740-1,826/tonne for domestic contracted material on 30 October.
ACN export spot prices had been steady for the three months ending 30 October as producers cut their manufacturing rates and buyers worked off inventories during the global recession.
Buyers had hoped that a 10 cents/lb drop in propylene costs would work its way down to ACN prices. Producers lowered their asking price somewhat during the period, but not enough to invite higher sales.
Two ACN plants were offline for maintenance during the period while two others ran at reduced rates. US manufacturers were content to supply contract obligations and mostly avoided the export market.
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Acrylonitrile
Uses and Outlook
Acrylonitrile (ACN) is used mainly as a monomer or comonomer in the production of synthetic fibres, plastics and elastomers. The largest outlet is in the manufacture of acrylic fibres, which are soft and light with warm tactile feeling similar to wool fibres. Hence they are used in clothing such as sweaters and jumpers, socks and sports wear. Acrylic fibres also have uses in home furnishings and bedding such as carpets, upholstery, cushions and blankets.
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Acrylonitrile
Process Technologies
The dominant route for the manufacture of ACN is the one-step propylene ammoxidation process, replacing the original acetylene-based technology. Propylene, ammonia and air are reacted in a fluidised bed reactor to produce ACN with acetonitrile and hydrogen cyanide as by-products. The original catalyst consisted of bismuth phosphomolybdate on silica, but recent catalyst developments have improved yields and can boost capacity of existing plants by 20%. The domination of licensed technology by BP Chemicals (Sohio) ended in 1995 when Solutia (Monsanto) licensed its technology to Tae Kwong in South Korea.
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