Recycled Chemical Fiber Will Develop Steadily

The rising price of oil, coal, electricity, packaging, freight and oil prices has made the recycled fiber industry difficult.

In the current off-season, the regeneration of chemical fiber factory in addition to coping with the pressure of rising production costs, it also faces huge financial risks.

As far as the current situation is concerned, raising prices is undoubtedly an effective way to pass on the cost of the regenerated chemical fiber factory.

But it is not easy to raise prices in the off-season, especially for cotton polyester staple mills.

Due to the long slump of the downstream yarn factories and the impact of the Olympic Games on the cotton mills and dyeing factories in the north area, the reduction of cotton mill production is widespread, and the demand for recycled polyester staple fiber is decreasing.

Affected by the poor demand of the downstream, the cotton chemical fiber plant in Jiangyin is also widely reduced, allowing for a low profit and low profit.

In the first ten days of June, some high-strength imitation products appeared tentative price increases, but because there was no strong market demand to support them, there was still only the callback price.

In the face of large capacity, the same number of enterprises in the cotton market, the price increase is obviously difficult.

The price increase is unworkable, and the price reduction is even more priceless. At this time, the cotton plant only has to wait for the downstream demand to turn better.

The market for recycled hollow fibers is breathtaking compared to cotton plants.

At the end of June, three dimensional hollow polyester staple fiber manufacturers began exploratory pricing, followed by 7 months later this kind of products generally rose, up to 200~400 yuan / ton, the effect of holding up is obvious.

However, we can not ignore that although the downstream demand has been stimulated by price increases, there are still some small and medium-sized enterprises producing three-dimensional hollow polyester staple fibers in low prices and sluggish sales.

In fact, the opening rate of 3D hollow factories in July has not improved, and many manufacturers still have parking intentions.

In this sense, the price increase has not fundamentally solved the problem, nor has the weakening environment improved.

Overall, with the passage of time, downstream demand for recycled chemical fiber products has begun to increase.

However, the regenerated chemical fiber factory is generally cautious about the market in the second half of the year, not only because of the downturn in the downstream industries, but also because of tight monetary policy.

At present, chemical fiber enterprises have generally shortened capital turnover time in order to cope with potential capital risks, and are cautious about dealing with the US dollar.

When the market participants turn their attention to September 20th, the impact of the Olympic Games on production and pportation will be lifted. The impact of the hot weather will also weaken, and the demand for recycled chemical fiber products should also increase significantly.

With the increase of raw material supply, the price of raw materials for regenerated chemical fiber will be suppressed in the near future. Before the downstream demand is booming, the regenerated chemical fiber plant will also run smoothly.