After nearly four months of persistent price declines, the domestic industrial-grade acetonitrile market has recently shown signs of bottoming out and rebounding. This week, Zhejiang Petrochemical's acetonitrile auction closed at 7,900 yuan/ton, flat from last week. Meanwhile, prices in the Shandong market, which had been at a persistently low ebb, rose by 200–300 yuan/ton to 7,500–7,600 yuan/ton from last week's 7,300 yuan/ton. The supply reduction was the immediate factor that triggered the market bottom, and with some follow-through in regional demand, it helped producers digest inventories and spurred a modest price rebound.
By-product acetonitrile supply shrinks significantly
The recent supply reduction has been concentrated in the by-product route. Capacity utilization in the acrylonitrile industry has fallen to slightly below 70%, with major plants in East China running at especially low loads: Sierbang is still operating only one unit, Shanghai SECCO is at 50%, and Zhenhai Refining & Chemical has also reduced to 50% load. Although Zhejiang Petrochemical's operations remain stable, external warehouse resources have been persistently insufficient in recent weeks due to typhoon impacts. In the downstream peptide sector, some users still primarily purchase by-product acetonitrile, resulting in localized supply tightness.
Synthetic-route producers trim external sales; preparation-grade and export demand rise
While by-product acetonitrile supply has been contracting, synthetic-route producers—though maintaining relatively high operating rates—have also reduced their external sales volumes. On the one hand, they are using the product internally to manufacture high-purity acetonitrile; preparation-grade acetonitrile is likewise in tight supply, driven by peptide demand. On the other hand, several plants report a significant increase in export orders, as overseas buyers begin a new round of procurement. Although synthetic-route producers are still hovering on the edge of losses, the margins on their integrated preparation-grade output remain fairly attractive, and export order prices are reportedly higher than domestic market levels. Producers are therefore continuing to run at high loads while keeping inventories low.
Recovered acetonitrile continues to pressure the industrial-grade market
Peptide demand has grown steadily this year, and while acetonitrile consumption has increased, the supply of slightly lower-content acetonitrile recovered from peptide production processes has risen in tandem. The recovered material is understood to be close to the level of standard national-grade industrial acetonitrile. Recovered acetonitrile of various grades is now being progressively adopted in downstream pesticide and even pharmaceutical applications, posing a clear challenge to conventional national-standard industrial-grade acetonitrile. This has been a key factor behind the sustained price decline since April and will also cap the upside for market rebounds going forward.
Longer-term outlook
Looking further ahead, by-product acetonitrile supply is expected to gradually recover and strengthen in September. Both the Tianchen Qixiang and Sierbang plants are scheduled to restart in late August, and Zhejiang Petrochemical's new 660,000-ton-per-year acrylonitrile capacity will begin coming on stream in September. However, Henan Longyu and Anqing Petrochemical both have maintenance plans in September. The acetonitrile market is expected to enter September with low inventories, with supply and demand both set to grow. Traditional downstream users are emerging from the off-season, and although the 810-ton procurement requirement for North Huajin's butadiene project has been deferred to October delivery, early stockpiling expectations should still provide some stimulus to the market. Overall, acetonitrile prices are expected to probe upward with fluctuations in the near term, but the upside may be limited.
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