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Insight | Time: Nov 28 2018 11:01AM
How will acrylic fiber fare under significantly decreasing settlements
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Sinopec adjusted down acrylic fiber prices currently, indicating that acrylic fiber prices gradually got back to a normal level. It was worthy to be paid attention that what would have impacts on the future market.

For feedstock, ACN market was relatively stable at present. Inventory of Sinopec Anqing was at around a half of the total, and the pressure of Jiangsu Sailboat was eased in some way due to its exports in earlier stage. Units of Shanghai Secco restarted, so there was no great pressure on East China. In North China, cargoes were sold stably on contracts. However, according to markets sources, inventory of PetroChina Fushun was under downward pressure, and market price was forced down.

Operating rate of Sinopec Shanghai gradually rebounded, and unit of Hangzhou Bay Acrylic was planned to restart after adjusting down prices. In general, supply of industry was anticipated to gradually increase.

For downstream market, due to bearish expectation in early stage, purchase intention was limited. Nevertheless, the purchase of downstream market was stimulated in some way as offers of some plants declined. According to the author, some yarn plants were inclined to purchase products with large decrease.

To sum up, the drop of acrylic fiber prices could be incentive for increasing purchase intention, and the prudent attitude that was affected by high prices of raw materials was likely to be improved. In the case of stable ACN prices, the decline of acrylic fiber prices promoted acrylic fiber and downstream production somewhat, and it also helped with maintaining profitable situation. This part of space was anticipated to play a buffer role in the background of fluctuating ACN price.

In general, as ACN prices return to rational, its support and impacts on acrylic fiber prices gradually weaken, and market is expected to focus on downstream demand in the future. 

[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
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