SunSirs: Buying Momentum Weakens, Vinyl Cyanide Market is Weak

Market summary: Last week, the domestic vinyl cyanide market lacked effective support, and buying momentum weakened. At present, the overall supply is sufficient, and the Zhenhai Refining and Chemical Plant and other units are expected to be put into production in June, which suppresses the market sentiment and prices are weak and downward. As of May 30, the mainstream negotiation price of self-pickup from East China Ports was maintained at 8500-8700 RMB/ton, a decrease of 200 RMB/ton from the previous week; the negotiation price of short-distance delivery in Shandong market was maintained at around 8400-8500 RMB/ton, a decrease of 100 RMB/ton from the previous week.

Supply side: In the northern market, Liaoning Jinfa's 260,000 tons/year vinyl cyanide unit is currently shut down for maintenance. Yulong Petrochemical's external sales have also decreased significantly since May, and Shandong Haijiang's 130,000 tons/year unit has been restarted and resumed; Sinochem Quanzhou's new production capacity in the East China market has been released, but it mostly flows to the South China market and downstream contract factories in Zhejiang and other places. At the same time, Anqing Petrochemical's 80,000 tons unit restart process is slow, and shipments are lower than expected. Zhejiang Petrochemical's 520,000 tons vinyl cyanide unit is currently operating at around 80%, CNOOC Fudao Hainan's 200,000 tons vinyl cyanide unit is currently operating at 80%, and Zhenhai Refining and Chemical's 400,000 tons vinyl cyanide new unit is reportedly scheduled to be put into production in June.

Ample inventory: The overall supply is abundant. According to statistics, as of May 28, the domestic acrylonitrile factory inventory was 43,000 tons, down 3,000 tons from the previous week.

Demand side: The capacity utilization rate of major downstream industries of vinyl cyanide in China varies. The chemical fiber plant in Jilin has gradually recovered, and the overall load of acrylic fiber has recovered to more than 60%; but the ABS industry has remained at around 60%. As of May 29, the ABS capacity utilization rate was 62.32%. Raw materials were purchased on demand, and the overall demand performance was average.

Overall, the domestic vinyl cyanide market is weak at present, and there is a lack of effective positive support from the news. The overall supply is sufficient, and the Zhenhai Refining and Chemical Plant and other plants are expected to be put into production in June, which has suppressed the market sentiment. However, in the short term, there is no pressure on industry inventory, and there are still variables in supply, and the market decline is still slow.

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