The major raw materials (PTA, MEG and acrylonitrile) for the synthetic fibres that compete with wool (polyester staple and acrylic) edged higher during April on the back of a higher propylene prices.
While synthetic fibre raw material prices continued their upward swing, polyester and acrylic manufacturers are reportedly struggling to pass on the price rises to yarn manufacturers particularly in China, largely due to competition from a record global cotton crop.
While Western European polyester staple manufacturers struggled to push through second quarter price increases, their counterparts in the US market were more successful, passing on a price increase at the start April. The extent to which lower cotton prices influenced demand in this market is somewhat more limited, since well over half of polyester staple consumption is in the form of nonwovens, fibre-fill and carpets.
Acrylic fibre prices in April lifted moderately from March mainly due to stronger demand levels in China. Demand conditions for acrylic in the US has been reported as unspectacular, while the situation if Western Europe is not good and is not expected to improve for some months.
Released by: ?The Woolmark Company 2005
