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Pressure on ACN price trends may build up
Jun '10
With increasing expectations of a weak third quarter, acrylic fibre producers might think of cutting operating rates, which could prove to be a dampener on prices of its raw material Acrylonitrile (ACN).

On one hand ACN prices have been on an upswing, while prices of its derivatives like acrylic fibre have not moved as much which, which has meant a erosion in margins of acrylic fibre producers.

In mid-April ACN spot prices had flared up to a high of US $2,500 per ton CFR (cost and freight) Asia, up by $500 per ton from those prevailing in January and have stayed around $2,400 per ton in the last few days.

The main reason for surge in ACN prices according to experts was the little more than usual spate of unexpected outages in Europe and a heavy turnaround schedule earlier this year in Asia, which had cut short supply of ACN.

Due to the high prices, downstream users are adopting a wait and watch attitude on hopes that ACN prices would fall from their peak levels and also looking for alternative raw materials to sustain their operations.

Fibre2fashion News Desk - India

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