Japan: Synthetic Fiber Market Picks Up

Asian Textile Business, Dec 2003

In response to a sharp climb in the prices of synthetic fiber materials and the shrinkage of makers' inventory, fiber producers began to put an emphasis on the recovery of the prices of their products for October shipment. According to an official of Toray Industries, Inc., Toray had carried out price rises for polyester filament and staple for apparel by 20 yen/kg, and nylon by 40-50 yen/kg for the past six months. "80% of users accepted our proposal at the range of 12-14 yen," said the official.

Toray plans to raise its prices of nylon as well as polyester filament and staple by 20 yen/kg from October. The price of CPL has remained at US$1,350/ton in the fourth quarter, after climbing about US$200/ton in the second quarter. On the other hand, PTA is priced at about US$600/ton, US$50 higher than the level in the past four months. The Toray official said that the inventory and supply of polyester and nylon decreased by around 11% in the first half of 2003 compared to the similar term of the previous year.

Teijin Fibers also has been endeavoring to raise its prices of polyester filament and staple. Teijin made it possible to increase the price of polyester filament and staple by 15-20 yen/kg from April shipments. The company expects to increase prices by more than 10 yen in October. "Since the prices of synthetic fiber materials continued to increase even in October, fiber producers have to cover the cost increase."

Acrylic fiber producers have also faced difficulties due to high material costs. Mitsubishi Rayon Co., Ltd. has been exporting acrylic fiber at US$1.5/kg from May against the company's intention of US$1.6 (CIF). At present, AN is quoted at US$820-850/ton, which was around US$950 in the first half of May. Acrylic fiber producers expect that the market is likely to climb soon in association with the pick-up of cotton prices.