Will acrylic fiber prices remain stable or shift by year-end?

The four regular acrylic fiber indices have remained stable since last November, with no signs of adjustment so far. ASF 1.5D staple fiber is offered at 13,800-14,600 yuan/mt, acrylic fiber 3D is offered at 13,800-14,600 yuan/mt, acrylic tow 3D is offered at 13,800-14,400 yuan/ton, and acrylic top 3D is offered at 15,400 yuan/mt.

During this period, despite fluctuations in acrylonitrile prices, acrylic fiber prices have stayed stable, with cash flow experiencing passive adjustments. The downstream yarn market is tepid, diminishing the impact of peak and off-seasons. Acrylic fiber prices struggle to align with raw material costs due to weak demand and ample supply. Price increases would limit sales in a loss-making state and raise purchasing thresholds in a profitable state, while price drops could negatively affect the profitability of both acrylic fiber plants and yarn mills.

In recent years, yarn mills have increasingly replaced acrylic fiber with more cost-effective alternatives like PSF and VSF. According to industry insiders, despite strong performance of fancy yarn orders in Zhangjiagang over the past two years, the price advantage of modified polyester has reduced acrylic fiber usage and decreased demand for pure acrylic products.

However, since April, rising PSF and VSF prices have eased the price disadvantage for acrylic fiber. Acrylonitrile plants may reduce production to support prices, making a price decline for acrylic fiber unlikely. The market remains flat, and participants are concerned about inventory devaluation from falling prices. They prefer to maintain stable prices while waiting for end-user demand to increase, and spinners might find reducing inventory and recouping funds to be a good strategy.