Acrylonitrile Staple Fibre market rises in the Asian market

The price of Acrylic Staple Fibre rises in the Asia Pacific region owing to high feedstock acrylonitrile, whereas the Propylene market saw a downtrend with easing crude price. As per the market source, the Acrylic Staple Fibre (ASF) 1.5D grade prices this week increased and were assessed at USD 2910 in China on an FOB basis.

Acrylic staple fiber is used in sweaters and sewn products due to its warm texture. It is also used in apparel and household industries. Producers believe that the demand has slumped drastically for apparels, but the demand is still stable to firm from the carpet manufacturing industry. Hence, the prices of ASF have not deteriorated despite declining demand from the clothing industry. Meanwhile, feedstock Acrylonitrile faces competition from other industries with high demands from rubber, plastics, pesticides, and the chemical industry.

Imports of Acrylic Staple Fibre from the European region remained weak due to persistently high freight charges and weakening demand amid the conflict between Ukraine and Russia. The United States is a significant importer of Europe and Asia, but these imports have been now majorly hampered by the current resurgence of covid-19 in the Chinese market, hence, leading to transportation and logistics issues.

Meanwhile, domestic ASF production remained weak in the Chinese market with limited availability of feedstock acrylonitrile. However, upstream Propylene prices fell significantly during the last week of March, coinciding with the decline in crude oil prices.

In addition, Tianchen Qixiang's new nylon material project, invested in and constructed by China chemical in Zibo has started its first phase of production on March 22 with optimum production rates. Tianchen Qixiang's new nylon material project adopts the adiponitrile technology independently developed by the affiliated Tianchen Company. It is believed that it will be the first landmark project in China to use its national technology to create the industrial production of adiponitrile.

As per the ChemAnalyst analysis," the price for Acrylic Staple fiber may fluctuate with stable cost pressure from upstream propylene. It is also anticipated that the supply chain may improve in the coming weeks with ease in covid restrictions in the Chinese market".