SunSirs: Vinyl Cyanide Market Was Weak and Declining

Price trend

This week (5.22-5.29), the vinyl cyanide market was weak and declined. According to the Commodity Market Analysis System of SunSirs, as of May 29th, the market price of bulk vinyl cyanide was 9,300 RMB/ton, a decrease of 3.38% from last Monday's 9,625 RMB/ton. As of 29th, the self pickup price of vinyl cyanide in the market was between 9,200 to 9,500 RMB/ton. The price of raw materials had slightly decreased, resulting in weak support for vinyl cyanide; The downstream atmosphere was weak, and prices decreased slightly, and the operating rate slightly declined, and the demand for vinyl cyanide continued to be weak; Although the overall start of construction in the vinyl cyanide industry had slightly declined, supply pressure remained; Vinyl cyanide market was weak and declining.

Analysis review

This week (5.22-5.29), the domestic vinyl cyanide production rate slightly decreased, but the overall supply pressure remained. Shanghai SECCO's 520,000 ton/year equipment was shut down for maintenance starting from May 21st; Lihuayi planed to restart its 260,000 ton/year vinyl cyanide plant at the end of May.

Recently (5.22-5.29), the raw material propylene market had significantly declined, and the cost support for vinyl cyanide was weaker. According to the Commodity Market Analysis System of SunSirs, as of May 29th, the domestic propylene price was 6,438 RMB/ton, a decrease of 5.09% from last Monday's 6,783 RMB/ton.

Downstream ABS prices continued to decline, with industry device starts slightly dropping to around 83%, weakening the support for vinyl cyanide; The prices of Acrylonitrile-butadiene rubber and polyacrylamide in China slightly decreased, the support for vinyl cyanide was mainly weak.

Market outlook

Vinyl cyanide analysts from SunSirs believe that as of the 29th, the supply pressure of vinyl cyanide remained, coupled with weak demand and cost support, it is expected that the vinyl cyanide market will be weak and slightly volatile in the short term.

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