Skyrocketing Price of Vinylon Staple Fiber
                     By Zhong Zeyang
The price of vinylon staple fi-ber in the  domestic  market
has increased by a big margin since late May.   The  price
offered in Shanghai has reached 15 600 yuan  per  ton,   a
rise of 3 100 yuan per ton and 24.5% over the 12 500  yuan
per ton at the end of April. However, transactions at such
a high price are not many.  Main  factors  for  the  sharp
price rise are as follows:
(1) The price of vinylon  with  great  strength  and  high
modulus property is 20 000 - 24 000  yuan  per  ton.   The
great gap in the price of vinylon staple fiber has induced
the price rise.
(2) The production cost of vinylon staple fiber  is  high.
Small batch production has also pushed the price to go up.
Producers have increased the price to avoid losses.
(3) Producers have changed their marketing strategy.  They
make production according to  customers'  order  to  avoid
building up of inventory.
  The diminishing resources of vinylon staple fiber and the
continuous price drop of polyvinyl alcohol will generate a
resistance to the price rise, and  there  is  therefore  a
possibility of price drop in near future.