Qinhuangdao shuts down AF lines on poor margins

13 May 2008 12:06  [Source: ICIS news]

SHANGHAI (ICIS news)--China-based Qinhuangdao Acrylic Fibre has shut down its its 50,000 tonne/year acrylic fibre (AF) plant early this month due to squeezed margins, a company source said on Tuesday.

Qinhuangdao, located in north China's Hebei province, operates 10 AF lines with a combined capacity of 50,000 tonnes/year.

“We have to make this decision as higher feedstock acrylonitrile (ACN) squeezed our margins,” the source said. "Prices of AF were not high compared with ACN prices."

The scheduled shutdown period would last about one month, he said, adding he was not sure if the period would be extended.

ACN prices recently rose yuan (CNY) 100/tonne ($14tonne) from pre-Labour Day holiday levels to CNY16,800-17,000/tonne ex-tank east China, traders said.

Acrylic staple fibre (ASF) 3D, a typical staple grade of AF, was at about CNY17,500/tonne DEL (delivered) in east China.

($1 = CNY6.99)

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Helen Yan contributed to this article.

By: Judith Wang
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