10 July 2012 04:11 [Source: ICIS news]
By Helen Yan
“We expect prices to bottom out in July and rebound in the third quarter as the customers have to re-stock their supplies,” a major ACN producer said.
The downstream acrylonitrile-butadiene-styrene (ABS) makers have increased their operating rates in July to 75-90% of their capacities in
In the week ended 6 July, spot prices were at $1,600-1,650/tonne (€1,296-1,337/tonne) CFR (cost and freight) northeast
ACN prices have been declining in the past four months because demand has slumped amid the ongoing eurozone debt crisis, a fragile
The uncertain global market outlook has triggered off a spate of production cuts among the downstream acrylic fibre (AF) and ABS makers in
Acrylic fibre is used in products such as sweaters, tracksuits, blankets, home furnishings, fabrics and carpets while ABS is used in a wide range of products including household appliances, office equipment, automotive components and toys.
Most of these finished products are made in Asia for export to Europe and the
“Our margins are minus, with the feedstock propylene prices going above $1,350/tonne CFR NE Asia and ammonia prices rising to $700/tonne CFR NE Asia,” a major ACN producer said.
Several major ACN producers, including
“We have reduced our operating rates to around 70% of our total capacity but may consider further cutting the operating rate if the ACN prices continue to fall,” a company source at Asahi Kasei said.
The Japanese major has cut its production output by 10% in July to around 70% of its total capacity at its plants in
The Japanese major has a combined ACN capacity of 450,000 tonnes/year at its plants in Mizushima and
($1 = €0.81)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|