Acetonitrile Prices Slide Amid Weak Downstream Demand

Chemical Price

• Importers have reduced acetonitrile prices by ₹2/kg, bringing them down to ₹128/kg, ex-Mumbai, on advance payment terms. Traders' offers are currently at ₹130/kg, ex-Mumbai, with 60 days credit terms.

• Domestic manufacturers, Balaji Amines and Alkyl Amines, are offering through authorized dealers at slightly higher prices, ranging from ₹130 to ₹131/kg, ex-plant, on advance payment terms.

• Bulk interest for tanker loads has been noted at ₹125/kg for immediate lifting. However, domestic manufacturers and importers are unwilling to sell at this level, according to a market participant.

• Week on week, acetonitrile prices have dropped by nearly ₹6/kg due to weak downstream demand, which has been affected by the slowdown in pharmaceutical and rubber production during the festival holidays.

Chemical Supply & Demand

• India’s monthly demand for acetonitrile is estimated at 2,100-2,250 MT, translating to an annual demand of approximately 25,000-27,000 MT. The country’s production capacity stands at around 3,025 MT per month, but capacity utilization remains below 60%, primarily due to active and cheaper imports. On average, India imports about 1,000-1,250 MT of acetonitrile monthly, which hampers full utilization of domestic production capacity.

• Alkyl Amines, Balaji Amines, and Deepak Novochem are the major acetonitrile manufacturers in India. Alkyl Amines Chemicals Ltd, the largest producer in the country, had raised a complaint, leading to an investigation by the Directorate General of Trade Remedies (DGTR) as per a notification dated 26th March 2024. Acetonitrile’s primary consumers include the pharmaceutical, pesticide, electronics, perfume, rubber, acrylic nail remover, and battery manufacturing sectors. Additionally, Acetonitrile is used as an extraction solvent for Butadiene.

• Commercial production of acetonitrile occurs via two main routes. Globally, it is primarily produced as a byproduct of acrylonitrile manufacture through the Sohio process, involving propylene ammoxidation. In India, however, acetonitrile is commercially produced using acetic acid, ammonia, and caustic soda lye as feedstocks. To produce 1 MT of acetonitrile, 1.60 MT of acetic acid, 0.51 MT of ammonia, and 0.3 MT of caustic soda lye are required. Current market reports suggest that imported acetonitrile is priced significantly lower than domestically produced material.

• The industry awaits the DGTR’s oral hearing, as any implementation of anti-dumping duties could have an immediate impact on acetonitrile prices.

Chemical News

In the international market, upstream crude oil benchmark WTI prices have declined marginally by 0.02% to $70.98 per barrel, while natural gas prices have decreased by nearly 2.48% to $2.48/MMBtu. Feedstock prices have remained stable, with acetic acid FOB China priced at $345/MT, Propylene FOB Korea at $815/MT, and Ammonia FOB China up by 110 RMB/MT from last week, now at 2,766 RMB/MT.

Expert Opinion

As per the experts, acetonitrile prices are likely to remain bearish in the coming week due to reduced downstream demand from the pharmaceutical and rubber industries. However, the rising prices of acetic acid and ammonia could support a rebound in acetonitrile prices in the short term.