This week, the domestic acrylonitrile market has been operating weakly and steadily. The upstream raw material propylene market first stabilized and then rose, and the cost support is still acceptable. This week, the acrylonitrile factory followed the spot market with a slight decline, coupled with low downstream demand, and the lack of confidence in the future market, so some transaction prices on the market are biased towards the lower end. However, due to production cost factors, the downward space of the acrylonitrile market is relatively limited. As of the weekend, the mainstream negotiation for self pickup in East China ports is around 9000 yuan/ton, and the negotiation for short distance delivery in Shandong market is around 8900 yuan/ton.

In terms of supply, the operating rate of domestic acrylonitrile plants remains around 8.30%.

In terms of raw materials, the domestic propylene market has been mainly volatile this week, with the mainstream reference being 7100-7120 yuan/ton. Currently, the 200000 tons/year polypropylene plant of Jingbo Petrochemical restarted on July 28th, causing loose propylene offers in some areas and exacerbating downstream buying caution to some extent, resulting in weak support for price trends. It is expected that the propylene market prices will operate weakly in the short term.

Weak demand: The average operating rate of domestic ABS equipment this week was 62.86%, an increase of 3.49% month on month and a decrease of 19.22% year-on-year.

Overall, in the short term, the domestic propylene market may experience a high-level decline, with average cost support. At the end of the month, acrylonitrile factories gradually settled accounts, with limited trading activity on the market. However, some factories’ offers slightly weakened, and industry players lacked confidence in the future market. Therefore, the short-term acrylonitrile market is still mainly weakly adjusted, but considering cost factors, the downward space is relatively limited. The expected mainstream negotiated price for self pickup at East China ports is around 8900 yuan/ton.