The Acrylic Staple Fibre Market is Trending Downward as Demand Recovery Weakens
- 27-Jan-2023 3:26 PM
- Journalist: Nina Jiang
China: The upward price trend for Acrylic Staple Fibre (ASF) halted over the past three weeks as supply outpaced demand. The slowdown in orders reinforced this trend as downstream demand decreased and facilities in China scaled back production. Major ASF producers were compelled to decrease prices to attract customers, but buyers and consumers resisted placing new orders.
In Shanghai, the ASF price stabilized on 27th January 2023, with prices hovering at USD 2360/MT FOB Qingdao. A major downstream derivative, Acrylonitrile, market has been stable in China during the considered week, primarily driven by low demand from the regional market.
Market sources claim that it is difficult to improve the region's lackluster demand, and stockpiles are mounting. Additionally, encouragement is required for export orders from downstream sweaters, cut and sewn products, underwear, and socks producers. Simultaneously, the purchasing activity from European and the sub-continent has been reduced for a few weeks, which has slowed down the buying interest. Market players anticipate that the ASF market for about six months will be challenging due to a significant slowdown in export demand from Europe and the US as the summer season approaches.
In contrast, international players were more circumspect and only sometimes made purchases to cover emergencies, which decreased ASF prices. In the domestic Chinese market, downstream units were still consuming ASF that had already been produced. Few orders were placed because most acrylic market participants opted to wait for the further price reduction.
ChemAnalyst's forecast states, " The ASF market is anticipated to stay soft to low due to adequate stockpiles and weak demand in the Chinese region. However, due to little buying, the artificial fiber has stayed bearish since the beginning of the month, and prices are likely to stay rangebound in the upcoming months. Meanwhile, there was currently enough pre-stocked acrylic Fibre to satisfy the domestic and international demand.