The acrylonitrile spot market showed clear signs of easing in early July. On July 7, Lihuayi Lijin Refining & Chemical cut its acrylonitrile spot price twice in a single day, with a cumulative drop of 200 yuan/ton, settling at 9,200 yuan/ton ex-factory. The company's 260,000-ton-per-year acrylonitrile unit is operating normally, with no maintenance or production cuts. This indicates that the price reduction is not driven by short-term supply constraints but reflects a loosening of the supply-demand balance.
Supply-Demand Logic Behind the Price Adjustment
From a capacity perspective, Lihuayi's 260,000-ton/year unit is mid-sized in the industry, but its price adjustments often serve as a bellwether. The two cuts in a single day, totaling 200 yuan/ton, are not drastic by historical standards, but they come during a traditional off-season for downstream sectors such as ABS resin and acrylic fiber, where operating rates are generally low. Weak demand is transmitting upstream to raw material prices. Industry data shows that acrylonitrile inventories are at moderately high levels, with traders eager to sell but buyers adopting a wait-and-see approach, limiting transactions to small, urgent orders.
Stable supply coupled with insufficient demand is the core driver behind this price decline. Lihuayi's price move is essentially a passive confirmation of market realities. For other acrylonitrile producers, the likelihood of following suit is rising, especially those with high capacity utilization and inventory pressure, who may need to adjust ex-factory quotes to maintain sales momentum.
Transmission and Impact on Downstream Chains
Lower acrylonitrile prices have a dual impact on downstream sectors like acrylic fiber, ABS resin, and acrylamide. On one hand, reduced raw material costs improve profit margins for downstream companies. For acrylic fiber, where acrylonitrile accounts for over 70% of production costs, a price of 9,200 yuan/ton directly lowers procurement costs, potentially restoring 2-3 percentage points of gross margin.
On the other hand, the downward trend may reinforce wait-and-see behavior among downstream users. When the market expects further price drops, factories tend to reduce inventory and buy only as needed, creating a negative feedback loop that suppresses spot liquidity. For ABS resin producers, acrylonitrile is one of three key monomers, and its price volatility directly impacts resin cost calculations. The current ABS market itself faces weak demand and overcapacity, so lower raw material costs offer only partial relief against the broader downturn.
Ripple Effects Across Regional Industrial Clusters
Lihuayi is located in Shandong, a major production hub for acrylonitrile and downstream chemicals. The region hosts numerous acrylic fiber, ABS, and acrylamide processing plants, and this price cut will directly influence their procurement decisions. For textile chemical fiber enterprises in Shandong and neighboring provinces, acrylonitrile is the core raw material for acrylic fiber. Price changes typically transmit to yarn and fabric prices within 2-4 weeks, meaning textile buyers may see price softening on acrylic products by early August.
From a macro perspective, the decline in acrylonitrile prices reflects a broader cooling in chemical raw materials. In the first half of 2026, many bulk chemicals experienced a rise followed by a fall, with acrylonitrile coming under pressure in late Q2. Lihuayi's price adjustment can be seen as another sign that chemical raw materials are entering a cyclical adjustment phase.