Acrylic Fiber to Consolidate High

Acrylic fiber market is consolidating at high level recently. The market is supported by fluent sales and firm ACN price. Although chemical fiber market is under downward pressure, acrylic fiber doesn't fluctuate much as downstream acrylic yarn production continues well. Besides, the Dec acrylic fiber nomination came out at a rollover from Nov, which supported market confidence. In the short term, sales and production will keep normal in acrylic fiber market, spot prices will stay flat.

Overall running rates in acrylic fiber market decreases slightly to around 80%. Jilin Chemical Fiber subsidiary Jimeng Acrylic lowered operating rates to 70% due to feedstock shortage. Fushun PC kept running rates at 50%.

Bullish factors:
1. End-users in acrylic fiber market get ample orders recently, prices keep high.
2. ACN firms at 19300yuan/mt.
3. Market sentiment keeps good.

Bearish sentiment:
1. Acrylic yarn plants find it difficult to shift fiber costs downstream.
2. Acrylic fiber is less competitive compared with polyester substitutes.
3. ACN price may decline later as it has been rising continuously recently.
4. Acrylic fiber market is likely to enter dull season in Dec-Jan.

In conclusion, spot supply is tight, plants keep offers high and are still reluctant to sell. Demand from acrylic yarn plants is stable. Thus acrylic fiber market is expected to consolidate at high level.


$1=CNY6.67

source:CCFGroup.com