In an effort to expand beyond the competitive Indian acrylic fiber market, Indian Acrylic Resins (IAL) is stepping up its export activities to China. Notably, the price of acrylic fiber in India is currently higher than what it is sold for in China. According to *Asian Chemical News*, IAL is set to open its first warehouse in Shanghai by the end of October, signaling a strategic move into the Chinese market.
But why are Indian manufacturers selling at lower prices in China? IAL’s management explained that their export strategy is driven by two key factors: first, they anticipate a long-term increase in acrylic fiber prices in China, and second, domestic demand for acrylic spinning and garments in India is expected to decline, leading to weaker demand for acrylic fiber there. The company believes that without expanding its presence in markets like China, IAL may lose its long-term competitiveness.
Industry analysts highlight that in 2004, China consumed around 1.2 million tons of acrylic fiber, with projections suggesting this could rise to 1.5 million tons annually in the coming years. However, current production capacity in China stands at only 500,000 to 650,000 tons per year. Recently, prices have dropped significantly—falling from $1,950–$2,000 per ton at the start of the year to $1,700–$1,750 per ton. In contrast, the Indian market still sees prices between $2,000 and $2,040 per ton.
As India's largest acrylic fiber producer, IAL operates a 42,000-ton annual production facility in Punjab. Currently, 30% of its output is exported, with 7,000 to 10,000 tons shipped to China in the fiscal year ending March 31, 2005. Despite the price difference, IAL remains optimistic about China's growth potential and plans to boost exports to 12,000 tons in the 2005–2006 fiscal year. This move reflects a calculated bet on future market conditions and a desire to secure a stronger foothold in one of the world's fastest-growing textile markets.
Vibration Screen For Scrap Steel Slag
Vibration Screen For Scrap Steel Slag
Jiangyin Hangli Technology Co., Ltd. , https://www.hanglimachinery.com