Acrylic Staple Fibre Prices Fall More than Expected in the Asian and European Markets
- 07-Oct-2022 5:28 PM
- Journalist: Jacob Kutchner
New Delhi: Acrylic Staple Fibre(ASF) market has suffered another blow as the prices of ASF fall further in the latest assessment done by ChemAnalyst. The price quotations received by ChemAnalyst have been assessed with a more considerable price dip than earlier forecasted numbers.
According to the latest ChemAnalyst data, Asian ASF prices have witnessed a steep fall of around 4% in the first week of October 2022. The price decline has been due to limited buying activities amidst sufficient inventories.
Acrylic Staple Fibre prices reacted to the bearish outlook for the product. Downstream demand from end-use industries like sweaters, hand-knitting yarns, boat covers, and upholstery was dull as yarn producers witnessed lower sales, resulting in lower procurement of Acrylic Staple Fibre. Despite the lower output in the region, the falling price was supported by a lack of trading activity and slow demand. ASF producers in China also decreased their average run rate and continued to carry out production cutbacks foreseeing reduced offtakes from downstream sectors. Meanwhile, supply in the market was stable, with many plants operating at an average pace.
In the US, declining sales and weakening offtakes are signs of lowering market sentiments. However, operating costs increased, leading to a marginal rise in ASF prices in the USA. In addition, the excess inventory keeps prices mainly intact as manufacturers want to sell off the pilled stocks. In contrast, European Acrylic Staple Fibre prices hit drastically low in September amid the energy crisis and rising inflationary pressure, impacting demand. Thus, the ASF prices in Europe fell by 3% during September.
As per the ChemAnalyst Forecast, “The Acrylic Staple Fibre prices in the global market may increase in the coming months as demand is anticipated to rise in the coming winter season. Acrylic Staple Fibre prices may likely stabilize in China with a recovery in demand in October and combination with the seasonal rebound of textile production in the country.”