28 July 2010 06:07 [Source: ICIS news]
By Helen Yan
SINGAPORE (ICIS)--Asian acrylonitrile (ACN) prices are poised to fall further due to increased deep-sea supply coming from the US Gulf, at a time when demand is slackening, industry sources said on Wednesday.
ACN shed $280/tonne (€215.60/tonne) from late June to $2,000-2,050/tonne CFR (cost and freight) ?xml:namespace>
Spot prices in
AF is the main downstream sector for ACN.
August spot offers for deep-sea cargoes fell below $2,000/tonne CFR India, according to downstream AF producers in
“We have received spot offers at $1,980/tonne CFR India for August shipments, but we are in no hurry to purchase ACN as the acrylic fibre market is very weak,” said a downstream producer in
“The third quarter is usually a high demand season for AF makers, but it is not happening this year,” said an AF producer in
Acrylic fibres are used in clothing and home furnishings, such as carpets, upholstery, cushions and blankets.
Most AF facilities in
AF prices are currently at around $2.70-2.75/kg CFR
“We expect AF prices to drop further to below $2.60/kg,” said a producer in
“Offers for ACN above $2,000/tonne CFR India are not workable, as we need a spread of $600/tonne to post any margins,” he added.
But the Indian ACN market has a spot-driven nature and does not represent the broad Asian market, regional producers said.
“Prices tend to fall or rise faster in
Still, the falling Indian ACN values would have an impact on prices in
Chinese traders were heard seeking to purchase August shipments of deep-sea ACN cargoes from the US Gulf at below $2,000/tonne CFR, they added.
Acrylic fibre producers in Asia include Tong-Hwa Synthetic Fiber Co, Indian Acrylics Limited (IAL), Pasupathi Acrylon, Vardhman Acrylics, Thai Acrylic Fibre Co, Zhejiang Hangzhouwan Acrylic Fibres Co and Jilin JiMont Acrylic Fiber Co.
($1 = €0.77)
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