Acrylonitrile pricing has dropped sharply in 1998 as Asian markets have deteriorated.
Global consumption is dictated by demand for acrylic fiber and acrylonitrile butadiene styrene.
BP Chemicals and Sterling recently announced plans for a jv to market material in Asia and South America. New plants, all scheduled onstream in 2000, are planned by IPCL in India, Solutia in the U.S., and a BP-Sinopec jv in China. In the past, derivatives capacity buildup in Asia has always run ahead of acrylo expansions, but with demand forecasts being corrected downward, producers say sluggish demand will continue though 2000. Asahi is also evaluating production in the U.S. as well as Singapore or Thailand. BP is operating a pilot plant but has announced plans to commercialize the process.