Acrylic fiber market stagnant amidst price pressures

Acrylic fiber prices have remained unchanged since last November, despite fluctuations in raw material costs. A combination of weak demand from downstream yarn manufacturers and ample supply in the market has prevented price adjustments. The traditional peak and off-season patterns in the yarn market have also been muted.

As per CC Group analysis, while acrylic fiber producers face margin pressures due to rising acrylonitrile costs, they are hesitant to increase prices for fear of losing market share. Conversely, reducing prices could harm profitability. The growing popularity of cheaper alternatives like polyester staple fiber (PSF) and viscose staple fiber (VSF) has further eroded acrylic fiber's market position.

Recent price increases in PSF and VSF have somewhat improved acrylic fiber's competitiveness. However, market participants remain cautious, opting to maintain stable prices while monitoring end-user demand. As inventory levels rise, there is growing concern about potential price declines, prompting some spinners to reduce stock and preserve cash flow.