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Acrylonitrile manufacturers crop production
26 Jul '08
2 min read
A number of global acrylonitrile producers have cropped production in recent weeks in response to weak market economy.
Taekwang Industrial an acrylonitrile and acrylic fiber production company in South Korea has reduced its production capacity by 5 to 10 percent from last week.
Sources from the company informed Fibre2fashion "that they have indeed reduced their plant operations due to higher feedstock price, and poor availability of feedstock material." He also added that since their main feedstock provider has also reduced their plant operational rate, so Taekwang was also forced to cut their production to maintain feedstock levels.
Similarly fibre2fashion also spoke to Tongsuh Petrochemical Corp, another major acrylonitrile producer, which also has plans to reduce their plant operation rate by at least 10 percent since profit margins have gone down due to high prices of propylene. However, an announcement in this regard would only come by July 28.
Similarly Asahi Kasei also confirmed the news to fibre2fashion but refused to divulge details of the cut.
Acrylonitrile is being quoted by Tongsuh Petrochemicals at US $2200 per ton (FOB Korea) for July deliveries.
The manufacturers of the acrylonitrile need to price it at a minimum US $2275 for breakeven, considering that prices of propylene are ruling at $1,775 per ton CFR China/Northeast Asia.
Ineos Nitriles and Cytec Industries have also cut back their acrylonitrile production in the US, by 30 and 25 percent respectively.
Taekwang Industrial an acrylonitrile and acrylic fiber production company in South Korea has reduced its production capacity by 5 to 10 percent from last week.
Sources from the company informed Fibre2fashion "that they have indeed reduced their plant operations due to higher feedstock price, and poor availability of feedstock material." He also added that since their main feedstock provider has also reduced their plant operational rate, so Taekwang was also forced to cut their production to maintain feedstock levels.
Similarly fibre2fashion also spoke to Tongsuh Petrochemical Corp, another major acrylonitrile producer, which also has plans to reduce their plant operation rate by at least 10 percent since profit margins have gone down due to high prices of propylene. However, an announcement in this regard would only come by July 28.
Similarly Asahi Kasei also confirmed the news to fibre2fashion but refused to divulge details of the cut.
Acrylonitrile is being quoted by Tongsuh Petrochemicals at US $2200 per ton (FOB Korea) for July deliveries.
The manufacturers of the acrylonitrile need to price it at a minimum US $2275 for breakeven, considering that prices of propylene are ruling at $1,775 per ton CFR China/Northeast Asia.
Ineos Nitriles and Cytec Industries have also cut back their acrylonitrile production in the US, by 30 and 25 percent respectively.
Fibre2fashion News Desk - India
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