Acrylic fibre prices up on support of firming acrylonitrile

Acrylonitrile market sentiment in Asia was buoyed by demand from acrylamide producers across the region amid tight supply in he week ended 11 July. During the week, some major producers in China also lifted offers, partly to pass on the increased cost of propylene. However, acrylic fiber producers were heard stepping into the market cautious at current price levels.

Meanwhile, European acrylonitrile spot prices also rose on the back of scarcity amid improved demand. In US, acrylonitrile export price was assessed flat on the week, but had a high possibility to move higher on tight supply in the short-run. Asian acrylonitrile marker, the CFR Far East Asia was assessed at US$1,959-1,961 a ton, up US$25 while CFR Southeast Asia gained US$20 at US$1,954-1,956 a ton. NWE acrylonitrile spot prices jumped US$50 week on week to US$1,923-1,927 a ton CIF Mediterranean. In US, acrylonitrile export price was at US$1,890-1,910 a ton FOB USG.

Upstream, propylene prices firmed up in the week in Asia on tighter supply amid rising demand, particularly from the polypropylene sector. Asian markers were up US$10-20 on the week, assessed at US$1,414-1,416 a ton FOB Korea and US$1,464-1,466 a ton CFR China. In Europe, chemical-grade propylene spot was driven down by ample availability and lack of corroborating demand. Chemical grade propylene was down Euro12 on the week, at Euro1,044-1,048 a ton FD NWE. In US, chemical-grade propylene spot prices spiked US cent 1.50 to US cents 63.50-64.00 per pound delivered as contract prices were hiked for July.

The faster rise in acylonitrile prices than propylene widened the spread between the two to US$545 a ton, up from US$540 a ton week ago. The same was as low as US$370 a ton in December.

Acrylic fiber market sentiment turned buoyant in the week also supported by the uptick in feedstock acrylonitrile prices. The markets extended the uptrend after major petrochemical producers released their list prices for mid-month, with numbers higher than early-month. However, downstream acrylic yarn markets moved sideways and demand for solid yarn was lukewarm.

In Pakistan, ASF market was range-bound as yarn markers bought hand-to-mouth volumes. Prices in India were revised upwards for July in rising cost. Taiwan’s Tong-Hwa pegged its offers for 3D bright tow at US$2.61 a kg and Thailand Acrylic Fiber at US$2.50 a kg. In China, cotton-type staple fiber was at US$2.86-2.98 a kg, up US cents 4 on the week. Medium-length staple rose US cents 2-7 to US$2.85-2.98 a kg. Indian ASF prices were raised US cents 4 to US$2.90-2.92 a kg. In Pakistan, 1.2D ASF was traded at US$3.14 a kg.