Australian Wool Innovation Limited reported that global oil prices rose by over 15 percent over the two months ending 2005 and beginning 2006, as traders increasingly focused on a tight supply position in the face of steadily rising demand.
Despite this lift in oil prices, the prices for Acrylonitrile (ACN - raw material for acrylic) and Monoethylene Glycol (MEG -raw material for polyester staple) fell significantly in January compared with the same month in 2005.
This could be in part due to the time-lag between changes in oil prices and subsequent movements in synthetic fibre raw material prices.
However, one of the world's most reputable synthetic fibre consulting groups reported that industry expected that prices would fall even lower than they did in January. This could be part of the reason for the slowdown in demand for acrylic fibre in Asia, as spinners waited for a fall in acrylonitrile prices.
Strong competition from cotton saw polyester staple prices decline during the later part of December in Asia, although this dip in prices was expected to reverse this month. Both the European and United States polyester staple producers pushed for a price increase in late 2005, succeeding only in pushing disgruntled US polyester staple buyers to look overseas for product.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
