Acrylonitrile markets derived strength from upstream

YarnsandFibers News Bureau 2014-07-11 15:25:00 – mumbai

Asian propylene prices were firmer in Northeast Asia due to tight supply and demand picking up in downstream sector particularly in the polypropylene market in the week of 4 July. The Asian marker, FOB Korea rose US$15 on the week to be assessed at US$1,394-1,395 a ton. The FOB Japan was pegged at US$1,375-1,377 a ton. Meanwhile, in Europe, chemical-grade propylene prices fell induced by supply glut which has been outpacing demand in recent weeks. Spot was down Euro12 on the week, to Euro1,055-1,060 a ton FD NWE and Euro1,035-1,040 a ton CIF NWE. In US, chemical-grade propylene was dearer in an abbreviated week, as market participants talked higher expectations for July propylene. It was assessed at US cents 62.00-62.50 per pound delivered up US cent 0.50 week on week. Latin American spot propylene markets were quiet, with no outbound volumes heard from Brazil, South America's top producer and exporter of the monomer.

Firming propylene costs prompted acrylonitrile sellers to hike offer for spot cargoes. This was despite stable buying interest in the Far East and Southeast Asia. Asian marker, the CFR Far East Asia was assessed at US$1,934-1,936 a ton, up US$5 while CFR Southeast Asia gained US$10 at US$1,934-1,936 a ton. Entering July, acrylonitrile markets also gained in Europe on the back of higher costs and reduced spot availability. The NWE spot prices inched up US$5 to US$1,873-1,877 a ton CIF Mediterranean. In US too, acrylonitrile export assessment continued to climb on tight spot supply, in the week jumping US$35 to US$1,890-1,910 a ton FOB USG.

Downstream acrylic staple fibre markets in Asia mildly strengthened on rising acrylonitrile prices in the week. However, spinners bought volume only to meet their current needs although they had lifted heir operating rates amid low inventory levels. Prices in India and Pakistan rolled over from previous week. Thailand Acrylic Fiber pegged its offers for 3D tow at US$2.50 a kg, unchanged from last week. In China, cotton-type staple fiber was at US$2.86-2.94 a kg, while medium-length staple inched up to US$2.82-2.91 a kg. Offers for Taiwan origin 3D bright tow were placed at US$2.50-2.61 a kg. Indian ASF was traded at US$2.89 a kg while in Pakistan, 1.2D ASF was pegged at US$3.14 a kg.

Courtesy: Weekly PriceWatch Report, Daily textile price service

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