Introduction

Demand for Acrylonitrile softened due to price hike in feedstock material, Acrylic fiber manufacturing is the largest use of ACN acrossthe world. The Acrylic fiber manufacturers are looking for other alternativesof this process as price hike is mainly due to poor downstream market. ManufacturingIndustry is looking for alternative roots to reduce the production cost.

Almost 50% of the total ACN is used to produce Acrylic fibers. Currently the demand of Acrylic fibers is stagnant, where Acrylic fiber producers are bound to run their plants near by 60% of their actual production capacity. Fibre producing Industry also plans for shutdown at regular interval so that the volume of acrylicfiber does not increase in the market.

Fibre producers are also planning for technologically upgradation to reduce their production and plant operating cost. Price hike inAcrylic fiber is necessary which is justified by ACN manufacturer and Acrylicfiber producer; by argues that 1.1 pound propylene and pound ammonia is usedto make 1 pound of Acrylonitrile. Price of both the raw materials have is beenincreased drastically, which is even reflected in the price of other textilefibers like Polyester with one or other reasons. One can even say passed on tothe user, but in Acrylic fiber usage is less and due to poor market share price hike is resisted strongly and margin of manufacturer get affected, which again effect on production process only.

Outlook

In another study it was also seen that Rising ammonia and propylene prices are accepted in other derivatives of ACN e.g. ABS, SAN etc demand of the otherderivatives are not shrank compared to Acrylic fibers due to diversified usage.Recently the scenario has been changed that the trend of ABS remains the keyfactor and driving force in ACN market. Usage of ABS is increased during last10 years and may be in near future we would see a transition phase where ABScome up as import consumer of ACN. As far as the consumption of Acrylic fiberis concerned; it is believed that we may see some relief from propylene side, and once the barrier is crossed (New Diversified Use Found or price hike is accepted) in long term there is definitely a growth for this industry.

Demand for acrylamide is strongly driven by waterpurification industry, while the demand for carbon fibers in Automobilesindustry is increasing day by day. ABS is also one of the important inputs inAutomobile industry. This smaller segment and uses of ACN will also support themarket trend strongly in near future. Experts believed that in near future ACNmarket will also turn bullish as demand increase strongly.

In Supply side global ACN manufacturer do not see much moreaddition and supply remain unchanged at 6.2 million metric ton till the end of thisyear. As per the market trend there are only few plants coming up, one of them isthe joint venture between Asahi Kasei and PTT chemicals at Thailand; the plant is going to start in 2011.

Technological Innovation

Propylene ammoxidation is still the major commercial routeto produce Acrylonitrile. BP generally uses Sohio Process where propylene, ammonia and air are mixed to produce ACN and allied products. Asahi Chemicals andSolutia use a separate technology to produce ACN.

Efforts are going on jointly by BPChemical, Asahi Chemicals and Mitsubishi Chemical to invent cheaper technologyto produce Propane to ACN. Mitsubishi Chemical is also pursuing its low propane conversion project in JV with BOC. As of early 2001, Asahi Chemical is undertaking commercialtrials at Kawasaki for the new technology, and BP operated a $10 milliondemonstration plant at Green Lake, Texas.

Global Production Capacity of Acrylonitrile

• Global production capacity is 6.25 Million ton in Year 2008

Top Exporters of Acrylonitrile for Year 2007

Top Importers of Acrylonitrile for Year 2007

Price Trend of Acrylonitrile in Last One Year

Source: www.fibre2fashion.com

Source: www.fibre2fashion.com

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