Acrylic fibre prices remain firm after a jump in April
Acrylic fibre (ASF) prices rolled over firmly in Asian markets in the second week of May, making it the fourth straight week of flat run. The firmness was irrespective of changes or variations in raw material cost. In China, supply was short and liquidity mostly came from delivery of contract goods, with sporadic orders discussed at steeper levels. At the moment, producers were controlling prices, with a possible hike expected in coming weeks as the run rate has fallen below 50%, making supplies tighter. Offers for Taiwan origin 3D bright ASF tow were ruling at US$2.55 a kg while offers for medium-length fibre and cotton-type ASF in China were at US$2.85 a kg.
In Pakistan, acrylic fibre prices were stable for the fifth consecutive week implying demand stability amid rising cost. 1.2D ASF in Karachi market was traded at US$2.59 a kg). In India too, producers’ offer rolled over since they were last revised in March on cost support at US$2.62 a kg.
ASF markets has also been deriving cost support from acrylonitrile (ACN) prices which retraced down in China and rose in other markets during the second week. In China, traders lowered offers to move volumes, while others tended to sustain price given high purchasing cost.
In Europe, a May contract was completed above April citing strong demand and limited supply as the main reasons. In US, the upside in Asia continued to pressure US acrylonitrile export market amid ongoing supply disruptions in global market. The Far East CFR marker gained US$20 a ton while in China, self-lifting values at Lianyungang port moderated US$50 a ton. US export prices gained US$20 a ton.
The increase in ACN prices also supported feedstock propylene prices to pick up in Asia, which spurred restocking demand. However, the recent surge in propylene prices in China slowed down but if demand does not last, probably prices may weaken due to oversupply. However, prices are likely to remain supported on tight spot availability due to plant maintenance in China. Asian propylene markers gained US$20 a ton with CFR China.
Source: Global Markets Weekly Review
