Acrylonitrile Listing Price Drops 350 Yuan, Reshaping Cost Transmission in Chemical Fiber
On July 6, Sinopec East China cut its acrylonitrile listing price by 350 yuan per ton, setting the new price at 9,700 yuan per ton. Both Zhenhai Refining and Anqing Petrochemical implemented the same price, signaling a clear bearish stance from the core domestic supplier. This 3.5% decline exerts direct downward pressure on spot market prices.
Background
Acrylonitrile is a key monomer for acrylic fiber, ABS resin, and acrylamide. Sinopec East China's listing price adjustments are widely regarded as industry benchmarks. This reduction reflects recent supply-demand imbalances. On the supply side, stable operations at Zhenhai and Anqing have kept inventories ample. On the demand side, weak procurement from downstream acrylic fiber and chemical sectors has slowed inventory digestion. The supplier chose to cut prices to stimulate sales, a typical market response to oversupply.
The 350-yuan reduction is not minor; it carries clear signaling intent. It reflects upstream caution about near-term prospects and suggests that profits are shifting from raw materials to mid- and downstream sectors. For the textile industry, lower acrylonitrile prices will directly reduce acrylic fiber production costs, affecting pricing for acrylic yarns and blended fabrics.
Industry Impact
The impact of acrylonitrile price cuts on the textile chain operates at two levels.
First, cost pressure on acrylic fabrics and yarns will ease temporarily. Acrylonitrile accounts for 70-80% of acrylic fiber production costs. This raw material drop could lower acrylic fiber costs by about 250-280 yuan per ton. For acrylic fiber producers, this helps restore margins but may also trigger price competition. For downstream knitting and woolen mills, lower input costs open a procurement window, but they must guard against inventory depreciation if prices continue falling.
Second, from a broader perspective, falling acrylonitrile may weaken ABS and other chemicals, indirectly affecting textile machinery and accessories. ABS is used in machine housings and fittings. Lower ABS costs could reduce equipment manufacturing expenses, potentially lowering machinery prices.
Regionally, key acrylic and blended fabric production clusters in Zhejiang, Jiangsu, and Shandong will first feel shifts in procurement sentiment. In the short term, downstream buyers may adopt a wait-and-see approach, delaying purchases until prices stabilize.