Market summary: This week, the domestic acrylonitrile market lacked effective positive support, and buying momentum decreased. At present, the overall supply is abundant, and there are expectations for the commissioning of facilities such as Zhenhai Refining and Chemical next month, which is suppressing market sentiment and causing a weak downward trend in prices. As of May 30th, the mainstream negotiation for container self pickup at East China ports has remained at 8500-8700 yuan/ton, a decrease of 200 yuan/ton from last week; Short distance delivery to the Shandong market remains at around 8400-8500 yuan/ton, a decrease of 100 yuan/ton compared to last week.
Supply side: From the perspective of the northern market, the 260000 ton/year acrylonitrile plant in Liaoning Jinfa is currently undergoing maintenance and shutdown. Since May, Yulong Petrochemical’s external sales have also significantly decreased, and the 130000 ton/year plant in Haijiang, Shandong has resumed operation; The new production capacity of Zhonghua Quanzhou in the East China market has been released, but most of it flows to the South China market and underground contract factories in Zhejiang. At the same time, the restart process of Anqing Petrochemical’s 80000 ton unit is slow, and shipments are not as expected. Zhejiang Petrochemical’s 520000 ton acrylonitrile unit is currently operating at around 80%, while CNOOC’s Fudao Hainan 200000 ton acrylonitrile unit is currently operating at 80%. It is reported that Zhenhai Refining and Chemical’s 400000 ton acrylonitrile new unit is planned to start production in June.

Abundant inventory: Overall supply is abundant. According to statistics, as of May 28th, the inventory of domestic acrylonitrile factories was 43000 tons, which is -0.03 million tons compared to last week.
Demand side: The capacity utilization rate of major downstream industries of acrylonitrile in China varies, and Jilin chemical fiber facilities are gradually recovering, with the overall load of acrylic fiber recovering to over 60%; However, the ABS industry has maintained a production rate of around 60%, with a production capacity utilization rate of 62.32% as of May 29th. Raw materials are purchased on demand, and overall demand performance is average.
Overall, the domestic acrylonitrile market is currently weak, with a lack of effective positive news support. The overall supply is abundant, and there are expectations for the commissioning of facilities such as Zhenhai Refinery next month, which is suppressing market sentiment. However, in the short term, there is no pressure on industry inventory, and there are still variables in supply, so the market downturn is still relatively slow.