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NE Asia may see shift in ACN trade flow as US-China trade war simmers

Northeast Asia may see a reshuffle in the trade flow of acrylonitrile should China go ahead with slapping an additional tariff on ACN imports from the US. But so far, the brewing US-China trade war has drawn muted reaction from Northeast Asia ACN producers and the downstream Chinese ABS market. If the tariff passes, then US producers such as Ineos currently selling to Chinese ABS producers will probably shift to South Korea or Taiwan instead. South Korean and Taiwanese ACN producers will move their cargoes to China accordingly, with a logistical markup. Two China-based ABS plants most likely to be affected by the proposed tariff is the 700 kta Ningbo-LG Yongxing Chemical and the 850 kta Zhenjiang Chimei Chemical, as they take in significant ACN volumes from the US.

Date: 
2018/04/18