Operating rate of acrylic fiber reduces to a low – ChinaTexnet.com
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Operating rate of acrylic fiber reduces to a low

2021-09-24 08:16:02 CCFGroup

Qifeng, JiMont and Aikerui’s acrylic fiber units with a total 380kta under Jilin Chemical Fiber has been shut successively from Sep 13 to Sep 16, 2021. The capacity accounts for about 48.1% of the total capacity in China. After the three units are closed, operating rate of acrylic fiber plants declines sharply, to be around 30%, which is quite different from the high operating rate of ACN plants.

For this round of sharp reduction of operating rate, on the one hand, the units in North China need to implement planned maintenance before the winter coming. On the other hand, the firm ACN prices put pressure on cash flow of acrylic fiber, and downstream spinning mills cut production in some regions affected by the dual control policy, influencing the acrylic fiber sales somewhat.

For feedstock market, despite of a slight decrease in mid-Sep, the settlement prices are still likely to be unchanged or higher than that in Aug. If acrylic fiber prices do not follow up, the cash flow will be worse compared with Aug. In addition, the operating rate of acrylic fiber is supposed to be about 40% in Sep, lower than 63% in Aug. Cash flow pressure may expand further.

In the meantime, downstream plants in Jiangsu are affected by the dual control policy. It is heard that some dyeing plants in Zhangjiagang has started power rationing. Part of spinners sees the influences on orders, which may restrain the purchasing willingness for acrylic fiber. It is understood that acrylic fiber sales have weakened slightly, and inventory is piling up, so acrylic fiber plants are rational to cut production to support prices.

Later, Sinopec Shanghai’s North unit has maintenance plan, which may start after the National Day holiday. In addition, Jiangsu Sailboat’s 260kta ACN unit has been shut on Sep 21, and the shut time is not confirmed under the dual control policy. Therefore, though operating rate of acrylic fiber plants is expected to rise in Oct, the actual recovery may be limited, and supply is expected to remain low.