12 June 2008 12:16 [Source: ICIS news]
SHANGHAI (ICIS news)--Nearly half the non-woven fabric producers in east China have been forced to reduce operating rates or shut down their facilities due to high prices of feedstock polypropylene (PP) fibre, producers said on Thursday.PP fibre prices had risen by yuan (CNY)5,000/tonne ($723/tonne) from March to June and were currently pegged at CNY17,200-17,300/tonne ($2,486-2,500/tonne) ex-warehouse east China, said some producers.
Traders in south China had increased their PP fibre offers close to CNY18,000/tonne, which had prompted non-woven fabric producers to reject new orders from customers.
"We are now working on the previous orders and [are] not willing to accept any new ones at such high cost," said a producer in south China.
"We are waiting for a reasonable price range of PP fibre and until then we will remain at a low production rate," he added.
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