Weak Demand, High Inventory Overshadow Anti-Dumping Duty Gains in Acetonitrile

Acetonitrile Price

• Importers have lowered Acetonitrile prices by ₹5/kg this week, bringing bulk offers down to ₹100/kg Ex-Mumbai on 60 days payment terms.
• Traders' spot offers currently stand at ₹101/kg Ex-Kandla, also on 60 days credit terms.
• Meanwhile, domestic manufacturers including Balaji Amines, Alkyl Amines, Jindal Specialty Chemicals, are offering via their authorized dealers at significantly higher price points, quoting in the range of ₹118-120/kg Ex-Plant on advance payment terms. 
• The firm pricing from domestic producers reflects the recent announcement of Anti-Dumping Duty (ADD) by DGTR, though its immediate impact on market dynamics has been limited due to prevailing surplus inventories and weak downstream demand.
• On a week-on-week basis, Acetonitrile prices have softened by nearly ₹6/kg, primarily due to persistent sluggish demand across major consuming sectors.

Supply & Demand Dynamics

• India’s annual demand for Acetonitrile is estimated at approximately 30,000 MT, translating to a monthly requirement of around 2,500 MT.
• Total domestic production capacity stands at nearly 4,000 MT/month, but capacity utilization remains below 60%, primarily due to active import competition offering lower landed costs. On average, India imports between 1,200–1,500 MT/month, further limiting domestic plant utilization.

The key domestic producers include:

1. Alkyl Amines Chemicals Ltd (AAC)
2. Balaji Amines
3. Jindal Specialty Chemicals
4. Deepak Novochem

• Recently, Alkyl Amines Chemicals Ltd lodged a petition with the Directorate General of Trade Remedies (DGTR), leading to the imposition of anti-dumping duties on imports from China, Russia, and Taiwan. The final duty structure notified is as follows:

Exporting Producer & Country wise ADD (USD/MT) as follows:

1. Nantong Liyang Chemical Co. Ltd China : 202
2. Shandong Kunda Biotechnology Co. Ltd China : 292
3. Weifang Zhonghui Chemicals Co. Ltd China :260
4. Other Chinese producers China : 481
5. Other Chinese via third parties China : 481
6. All Russian exporters Russia : 292
7. All Taiwanese exporters Taiwan : 233

• Despite this ruling, the Indian market has not yet witnessed a significant price impact due to heavy existing inventory levels and subdued downstream consumption.
• Acetonitrile finds its primary applications across pharmaceuticals, pesticides, electronics, perfumery, rubber chemicals, acrylic nail removers, batteries, and butadiene extraction sectors.
• Globally, Acetonitrile is primarily produced as a byproduct of acrylonitrile manufacture (Sohio Process) via propylene ammoxidation. In contrast, India utilizes a direct manufacturing route using acetic acid, ammonia, and caustic soda lye. The production economics require (per MT of Acetonitrile):
  a. 1.60 MT Acetic Acid
  b. 0.51 MT Ammonia
  c. 0.30 MT Caustic Soda Lye
• While Indian capacities have expanded considerably since 2021, excess supply remains a persistent market overhang, especially as Chinese exporters may offset the imposed duties through aggressive discounting strategies, a market participant noted.
• Domestic producers, however, maintain that the anti-dumping duties will eventually support price stabilization. Some observers suggest that any production discipline or price alignment between domestic players could ease surplus pressures and restore market balance.

Market News

• In international energy and feedstock markets:
• WTI Crude Oil rose by 0.73% to $74.04/bbl
• Natural Gas declined by 4.62% to $3.89/MMBtu
• Acetic Acid FOB China stable at $340/MT
• Propylene SEA at $830/MT
• Ammonia CFR Middle East at 344$/Mt 

Expert Opinion

• Expert's expects Acetonitrile prices to remain under pressure in the immediate term, weighed down by weak downstream demand and ample inventory levels. However, feedstock price firming (Acetic Acid and Ammonia), combined with the newly enforced anti-dumping duties, could start influencing price stability from July 2025 onward, depending on how Chinese exporters respond.
• Buyers are advised to closely monitor market adjustments post-duty implementation.
• Any price dips may present opportunistic buying windows for inventory build-up, especially as downstream sectors enter peak seasonal cycles.