Acrylic fibre prices steady as acrylonitrile nears bottom
Acrylic fibre prices generally rolled over in the week ended 18 January in Asian markets as both demand and cost remained unchanged. Prices had declined sharply in the third week of December, the last change seen on the market. Later prices tended to steady on controlled production and sluggish raw material acrylonitrile cost. Players expect prices to recover gradually in late January or early February on the back of higher operation from downstream acrylic fibre consumers.
Acrylic fibre raw material
Acrylonitrile prices in Asia were apparently nearing bottom due to squeezed margins as they rolled over with some inching up seen in China during the week. Trading activities were winding up in China amid silent market, and all deliveries will be completed in next week. Downstrean acrylic fibre markets were also silent in their activity. In Europe, prices stopped falling after dropping for two consecutive weeks on low demand. Spot prices have been on a free-fall since the beginning of October, partly because of a correction from previous highs. In US, spot export prices declined sharply as the market approached a floor amid a lack of significant liquidity. Re-stocking activity in Asia, particularly in China, before the Lunar New Year holiday in early February has pressured price discussions in US down as the region appear to build inventory before demand picks up later in the Q1.
Acrylic fibre feedstock
Feedstock propylene prices moderated in Asia due to poor demand ahead of the Lunar New Year holiday. China’s Sinopec also cut its list prices more than it had raised in the previous last week, implying that demand was had to pick at the moment. European propylene market was balanced as supply in some areas was better-than-expected while, some demand was lower-than-expected. Spot prices in US rose on gains in crude oil and propane costs which outweighed downward pressure from inventory built up
