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Acrylic
fibre manufacturers shut production
to restore market stability
Arbind
Gupta - Mumbai
Imports
under dumping duty net
Acrylic
fibre manufacturers in the country have resorted to closure of production
in an attempt to curb the growing inventory size as also to bring
about a desired demand-supply equilibrium in the market. According
to industry sources, manufacturers who have been resorting to this
move of production shutdown since mid December 2001, are expected
to continue the same till the third week of January 2002.
All the four major players, Pasupati Acrylon (25,000 tonnes per
annum capacity), Indian Acrylics (35,000 tonnes), Consolidated Fibre
and Chemicals (10,000 tonnes) as also Vardhman Acrylics (16,000
tonnes) have joined the exercise to restore some kind of stability
in the industry. It may be noted that the industry has been passing
through a very tough phase for the last few years now due to demand
slowdown as also an increased inflow of foreign fibre.
Speaking to Express Textile, Mr P M Nadkarni, assistant general
manager, Pasupati Acrylon said, “Our attempt is aimed at resolving
the problem of high inventory, and to maintain a reasonable balance
between demand and supply.”
It is learnt that the manufacturers have succeeded in liquidating
their stocks to a large extent in the past few weeks. According
to sources, each company was holding a stock of 2,500 tonnes, which
is much higher than the desired levels. “We couldn’t afford
to allow our inventory go beyond the 2500 tonne level. Moreover,
there is weak demand on domestic as well as the export front,”
stated an industry source.
As per market observers, prices of acrylic fibre have currently
stabilised at Rs 60-65 per kg levels after touching a low of around
Rs 52 per kg more than one year back. Industry sources say that
the situation in the last couple of weeks have improved following
the recent cut in production. “We expect prices to be at the
present levels for another two months or so and thereafter the scenario
may look up to a certain extent,” said Mr Nadkarni.
Meanwhile, the Director General of Anti-dumping and Allied Duties
(DGAA) has recommended imposition of provisional anti dumping duties
on imports of acrylic fibre from the UK, Germany, Bulgaria and Brazil.
The designated authority has recommended a provisional duty of $
0.684 per kg on acrylic fibre imported from the UK, while $ 0.143
per kg for Germany and $ 1.275 per kg for Brazil.
The investigation was carried out during the period April 1, 2000
to March 31, 2001, on the petition
filed by the Forum of Acrylic Fibre Manufacturers.
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