This week (8.3-8.9), the domestic acrylonitrile market continued to decline. The price of acrylonitrile in the domestic market has been continuously declining for more than three months, and there is still no clear sign of bottoming out. As of the weekend, the mainstream self pickup price in the East China market has dropped to around 8000 yuan/ton, and short distance delivery in the Shandong market is being negotiated around 8000 yuan/ton. Supply exceeding demand is still the fundamental factor leading to the decline in acrylonitrile prices. Due to the considerable profits of some acrylonitrile major factories in co producing MMA products, it supports the maintenance of acrylonitrile plant production, especially in maintaining ample supply. However, there is currently no effective positive news.

On the supply side, the operating capacity of domestic acrylonitrile plants has decreased to around 74%, still maintaining a high level.

In terms of raw materials, the domestic propylene market has slightly declined this week, with the mainstream closing reference at 6750-6850 yuan/ton. At present, the market direction guidance is not clear, and the wait-and-see sentiment among industry players still exists. Downstream demand is supported by a certain amount of buying demand, and most propylene companies have eased their shipping pressure, which still provides support for price trends. However, fundamental pressure still exists, and it is expected that the propylene market will be dominated by weak fluctuations.

Weak demand: This week, some ABS units in China have slightly increased their operating load, while downstream units have been affected by high temperatures and rainy weather, resulting in some shutdowns and holidays. As of the weekend, the average operating rate of the equipment was 67%, an increase of 1.13% compared to the previous period.

Overall, the domestic propylene market may experience weak fluctuations next week, with insufficient cost support. Although acrylonitrile factories have taken measures such as maintenance or production reduction to alleviate shipment pressure, downstream inquiries tend to be low-end, and the news of production reduction has not boosted the acrylonitrile market. The focus of transactions is expected to continue to weaken, and it is expected that the mainstream negotiation price for self pickup in East China ports will fall to around 7900 yuan/ton.