Textile Trade Friction Affects Asian Acrylonitrile Market Frustrates Market Prices

According to "Asian Chemical News", due to the Sino-European, Chinese-US textile trade frictions and Hurricane Kristina's impact, propylene prices continued to rise, while demand for acrylonitrile fibers was not strong, and Asian acrylonitrile fiber and acrylonitrile prices were frustrated.
Acrylonitrile fibers are widely used in the production of clothing, blankets, carpets, interior decoration materials, curtains and plush toys. In order to protect the interests of textile processing companies in the region, the United States and the European Union adopted a quota system to limit the amount of cheap Chinese textile imports. As a result, Chinese garment processing companies had to reduce their output, which indirectly made the price of acrylonitrile fibers only 1.70-1. $75/kg level. Acrylonitrile fiber manufacturers said that in order to maintain profitability must increase the price to 1.80 US dollars / kg or more, but based on the current oversupply situation, the recent price increase is unlikely. In addition, due to the price cuts in polyester fiber and cotton, acrylonitrile fiber production is also facing the pressure of being forced downward adjustments. These factors have led to a decline in the demand for acrylonitrile fibers in Asia.
Usually in July and August is China's peak demand for synthetic fiber, but this year has become an exception. As the demand for China's acrylonitrile fibers has dropped, exporters to China have had to reduce production. At present, most Asian acrylonitrile fiber producers can only maintain a low operating rate, and the utilization rate has been between 70% and 80% since June. Manufacturers in Turkey, Italy, Mexico, Spain and India have also been hit. Montefibre, Italy, suspended work for six weeks, while Aksa in Turkey reduced production, and Mexican producers also reduced load rates.

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