The firm rise in acrylonitrile prices due to short supply has resulted in severe cost pressure on acrylic producers. Many acrylic fibre producers were contemplating cut in run rate or shutdown due to squeeze in margins. Sellers were actively raising offers in expectation of tight supply, while buying interest from downstream textile market was not brisk as they bought hand-to-mouth volumes. With downstream demand gradually improving, ASF prices are likely to move up further, but the markup will be limited.

Acrylic Chain: Acrylonitrile Spurts Again [ 01 Feb, 2010]

Propylene prices declined marginally although crude oil slid back to US$73 a ton. Supply was extremely tight in Asia as derivatives producers were running at high capacity of polypropylene, PO, acrylonitrile, acrylic acid, 2-EH and n-butyl alcohol and many doing it willingly in view of building stocks in anticipation of further tightening of propylene supply.

Asian acrylonitrile prices were up further as the spot markets were in extreme short supply. Supplies are expected to get worse in coming months as major plants will be shut for maintenance in February. Asian acrylic fiber market sentiment was driven up by rising feedstock cost but had no support from downstream market. Thus price increases are hard to last long. Acrylic fibre was dearer by almost 12.5% in Pakistan.

Source: YnFx.com

Japan`s ASF production sharply increases in November [ 23 Dec, 2009]

The Japan Chemical Fibers Association reported that the nation’s production of man-made fibers decreased by 4.4% in November from the same month of last year to 75,462 tons. Of this, synthetic fibers decreased by 3.2% to 64,414 tons.

The production of acrylic staple fiber sharply increased by 44.8% to 11,343 tons. Meanwhile, nylon filament production decreased by 13.0% to 8,018 tons, along with that of polyester filament by 16.2% to 15,599 tons, and polyester staple fiber by 9.4% to 12,685 tons.

Source: Asian Textile