Acrylic Fiber Daily in China (27 Dec 12)

Domestic acrylic staple fiber was moderately traded today in spot market. Some producers still face growing pressure from rising cost, but were unable to raise offers without increase in downstream demand. Nevertheless, there may be bullish sentiment in the coming days. 1.5D acrylic fiber was offered at 16,800-18,000 yuan/ton, and 3D top at 16,600-17,500 yuan/ton.

Domestic acrylic tow and top producers was supported by firm cost and higher prices in USD-based market today. However, it is still unlikely to show a price hike in the short term on sluggish sales in downstream yarn maket. 3D tow was offered at 16,700-18,000 yuan/ton, and 3D top at 17,600-19,000 yuan/ton.

In USD-based market, producers pegged offers firm today on the back of reduced production and rising cost. The offers on a CFR basis were seen at around $2,400/ton, some were even higher to $2,430/ton. Despite bullish sentiment, discussions were still thin as home-abroad spread widened further.

Shanghai Petrochemical has brought the run rate of its acrylic fiber units back to a normal level. The involved Jinyang and Southern units, with a total capacity of 150 kt/yr, had been ramped down for maintenances since 12 Dec, causing a total production loss of 2,500 tons.