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Acrylic Fiber Industry and Current Slowdown: By: Fibre
Acrylic Fiber Industry and Current Slowdown: By: Fibre
By: fibre2fashion.com
N America 28%
Industry experts believe that price reduction in feedstock prices like ACN and Propylene has brought a relief among industry players, but there is a concern over the future market trend. As a precautionary measure they are running plant at lower rate. Speculators still kept their fingers crossed about the market trend. Demand slump is drastic still many of the producers are in hope that season of winter in northern hemisphere will push the consumption of ASF for apparel. While conversation it was clear that apparel market is the sector which could pour boom in upstream market. Automobile industry which was on driving seat for last one quarter will again on back seat and lets wait for the history repeat it self.
2007
Earlier in last quarter price of Acrylonitrile was touched to level of US$ 2175/ton in Asian market in month of August was reduced by 60 percent recently and touched to level of US$ 1300/ton. Price of ASF also increased to US$ 2.54/Kg and returned to level of January 2008 at US$ 2.29/Kg in recent days. Important price rally seen in Propylene where price increased to US$ 1760/ton in the month of July 2008 and take nosedive to US$ 305/ton when I am writing this. In European market price of ASF is reduced to US$ 2/Kg or 1.88/Kg which earlier touched to level of 1.97/Kg. Downstream textile market still aspect more price correction in ASF in near future. On other side ASF producers are confused with market trend as its very difficult to maintain margin. Majority of speculator foresee further 10 percent price slump in ASF price. Many ASF producers feel that their operation rates are reduced and also confirmed that they have to stop their procurement plans temporarily till the fresh order optimize. Over all ASF plant operation rate was near by 55 percent. The graph below suggests that the price of ASF is still expected to move down would be good news for textiles industry. Speculators opt stance of wait and watch as demand of textiles also went down. Ultimately, the fact that purchasing parity of customer world wide; is reduced is a bitter truth.
ACN Vs ASF
2500 2000 1500 1000 500 0 Nov US$/Ton Dec Jan Feb Mar Apr May Jun 2008 Acrylonitrile ASF Jul Aug Sep Oct Nov 2.60 2.55 2.50 2.45 2.40 2.35 2.30 2.25 2.20 2.15 2.10 US$/Kg
2007