Blind Expansion Of Demand Blocked Many Viscose Staple Enterprises In The Peak Season To Cut Down Production

In the past few years, blind expansion has led to an oversupply of viscose staple fibres, and the downstream export is not optimistic, resulting in the demand being hindered and the price plummeted.

At present, it is the peak season for viscose staple fiber production, but the information provided by the viscose industry association shows that many viscose staple fiber enterprises have reduced production or stopped production in recent years.

Recently, Mr. Tao, the head of a chemical fiber factory in Jiangsu, was a bit depressed because the price of viscose staple fell from mid April of this year, from the price of 21000 yuan / ton to the current 18500 yuan / ton, which means that every ton of viscose staple fiber will lose thousands of yuan.

Starting from 1 this month, his company had to stop production and repair, but in previous years it was the peak season for production.

This year, cotton prices have risen all the way, and the price of two cotton lint and short silk grade cotton pulp is also high. But because of the shortage of viscose staple fiber, the cost of raw materials can not be pmitted to downstream enterprises, and enterprises are under the pressure of "flour and expensive bread", which is generally in a state of loss.

In June 9th, Mr. Tao said that he is in a wait-and-see view. He has a month's inventory to sell, and he is not in a hurry to resume production. At present, the market demand is weak, and the more he produces, the more he loses.

He calculated an account according to the formula in the industry. The market price of two cotton lint in the market is about 7600 yuan / ton, according to the loss of 30%, the raw material cost price of short silk grade cotton pulp is about 1000 yuan / ton, plus processing fee and 6 point tax, the price of short silk grade cotton pulp is about 13600 yuan / ton.

Excluding the loss of more than 10% of short silk grade cotton pulp, plus the processing cost of 6000 yuan, the cost per ton of 1.5D viscose staple fiber should reach 21000 yuan / ton. According to the final selling price in the market, each ton of viscose staple fiber will lose about 2500 yuan.

More than Mr. Tao's business is in a state of shutdown. The high-density silver Hawk has limited production 20% in May, and will plan to overhaul a small production line of 10 thousand tons per year in mid June, which will last for about half a month. Shandong Hailong expects to suspend production of two plants in July 10th, for a period of 20~30 days, with a projected reduction of 6000~9000 tons. Jiangsu gold VEKA expects to repair 15 tons of 30 thousand ton production line in July for 15 days, and expect 1350 tons reduction in production.

As a matter of fact, viscose companies are overhauling production equipment every year. But this year, such a large scale of production and production has been concentrated for a certain period of time, which has rarely been seen, which is closely related to the current low market price. Enterprises are trying to adjust the supply and demand relationship through joint efforts to increase the market price of viscose staple fiber.

Since the entry of WTO, with the gradual abolition of foreign textile quotas and the strong development of domestic economy, China's textile and garment industry has been developing vigorously.

Viscose staple fiber has been developing rapidly in recent years due to the strong demand of textile industry in China. Especially after the price of each product has risen sharply, many domestic manufacturers have increased the intensity of expansion, and the capacity of the industry has expanded rapidly. The production of viscose staple fiber has expanded from about 430 thousand tons in 2000 to 1 million 500 thousand tons at the end of 2008.

It is estimated that by 2010, domestic viscose staple fiber production capacity will reach 1 million 800 thousand tons.

Ye Yongmao, vice president of China Chemical Fiber Association, told reporters yesterday that the cost of raw materials, labor costs, water and electricity charges and energy conservation and emission reduction has been rising. The price of viscose staple fiber should be more than 20 thousand yuan / ton, which is relatively reasonable. Now the price is low, reflecting the poor health of the industrial chain. The blind expansion of production in the past few years has led to an oversupply of viscose staple fibres. The export of textile and clothing in the lower reaches is still not optimistic for the time being, and the demand for viscose staple fiber has also been affected. In addition, there are some unhealthy price competition and smuggling situations, which have plagued the development of viscose staple fiber.

"Viscose staple fiber is entering the cycle adjustment, these enterprises intend to reduce supply, will play a certain role in promoting the balance of supply and demand, and the association will take measures to regulate industry competition, optimize industrial structure and crack down on smuggling, and the state is also stepping up efforts to eliminate backward production capacity. The entire chemical fiber industry has eliminated about 1000000 tons of backward production capacity last year, and this year is accelerating the pformation and upgrading of enterprises. It is expected that 2 million 300 thousand tons of backward production capacity of chemical fiber will be eliminated by 2011." Ye Yongmao said, "the chemical fiber industry is in the process of upgrading, and some enterprises will increase investment in equipment and technology, and continuously develop new products to expand downstream customers, which is conducive to the healthy development of the industry."

Xinxiang chemical fiber is speeding up its structural adjustment. While planning to reduce the production of some viscose staple fiber, it is also raising funds to invest in new projects. It is preparing to invest in an annual output of 40 thousand tons of high wet modulus viscose staple fiber project. It is estimated that the annual sales revenue will be 615 million yuan and the gross profit will be 120 million yuan.

The company said that the financial crisis has brought unprecedented impact on the viscose fiber industry. At this point, only by speeding up structural adjustment and upgrading industries can enterprises develop in a sustainable way, and differentiated and functional fibers are the future development direction of viscose fiber industry.

Compared with ordinary viscose fiber, the high wet modulus fiber has a competitive advantage. It is called "the second generation viscose fiber". It is one of the first choice of fibers for producing high-grade textile fabrics, and is favored by many domestic textile enterprises.