Acrylic fibre prices supported by low run rate and high cost
Acrylic fibre (ASF) prices remained unchanged in Asian markets in the second week of September, positing their seven weeks of flat run. In China, ASF plants, posted an average operating rate of around 55%, slightly higher than previous week following the restart of a plant in Hebei province in early September and was running at around 80% of capacity. It will have to shut down again before mid-September given weak margin amid spikes in acrylonitrile (ANC) prices, with restart unlikely until post week-long National Day beginning from 1 October.
Jilin Jimeng and Jilin Qifeng, meanwhile, were running their acrylic fibre plants at a lower rate of 40% this week down from 50% in August. The three companies accounts for about 44% of China’s ASF production.
Market players opine that operating rate will fall further in October given scheduled shutdowns at some plants. Production will also be capped in September as margins have eroded due to high cost of ACN. ASF prices were steady in India after they were hiked beginning of the month. In Pakistan too, prices remained flat in Karachi after they were lifted in early August
ASF raw material, ACN prices in Asia remained unchanged across markets as supply tightness continued to support firmer pricing. China’s Sinopec Anqing Petrochemical hiked its spot and contract prices citing limited global supply. In Europe, prices were steady due to limited imports and planned turnaround at a plant in September. In US, spot prices narrowed on the lower end but little to no material was traded in spot export market.
Feedstock, propylene markets opened the second week of September with prices unchanged in Asia amid no firm talks. Midweek saw prices firm up slightly on snug supply and healthy demand from Japan. In Europe, supply remained tight but activities picked up on rising Rhine water levels and improved downstream demand. In US, chemical grade propylene spot prices were relatively steady, widening slightly at the lower end, as availability improved.
