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    High Inventory And Low Profit Make The Chemical Fiber Industry Gradually Moving Towards A Cyclical Trough.

    2012/4/22 23:01:00 23

    High InventoryLow ProfitExcessive Expansion Of Capacity.

    For highly marketed domestic Chemical fiber industry The cyclical characteristics are particularly evident. Entering the 2012, China's terminal demand has been sluggish for several consecutive months. High inventory and low profit make the chemical fiber industry gradually move towards a cyclical trough.


    The domestic textile market is seriously saturated. From the recent situation, this year's external single slide is also a foregone conclusion. High inventory is a difficult problem for the entire chemical fiber industry. Yamen town is located in the central part of Xiaoshan District of Hangzhou. It is the only famous chemical fiber town named by the China Textile Industry Association. Its textile and chemical fiber accounts for more than 85% of the total economic volume of the whole town. The town's chemical fiber enterprises are gathering. Besides the leading enterprise Hengyi group, Rongsheng, Kai Shi and Xinghui are all domestic chemical fiber enterprises, and small and medium-sized enterprises are too numerous to mention. Xiang Huanjiong, purchasing manager of Kaiji group, said that the domestic textile market is seriously saturated. From the recent situation, this year's external single slide is also a foregone conclusion. High inventory is the problem that the entire chemical fiber industry has to face. The direct push behind it is the downturn of terminal demand.


    Data show that in January 2012 ~2 months, the total export volume of textiles and clothing in China was 31 billion 230 million US dollars, down 2.59% compared to the same period last year. If we exclude price factors, the volume of exports will decline more obviously. Polyester fiber It is in the middle and lower reaches of the PTA chain of the terephthalic acid, and the terminal connects to the weaving and garment industry. At present, the textile demand is declining and directly upward, leading to the overall upgrading of the inventory level of the chemical fiber industry. Old enterprises are busy raising production and grabbing market share; new enterprises hope to catch a ride and get a share. The result of individual rationality is collective irrationality. The chemical fiber industry is now overburdened. Low demand, high production capacity, the current chemical fiber industry downturn, largely due to excessive expansion of capacity.


    Statistics show that since 2010, the investment in chemical fiber industry has shown a rapid growth trend, of which the total investment in 2011 is as high as 73 billion 400 million yuan, which is 2.7 times as much as that in 2009. Polyester fiber And other chemical fiber industries. Some agencies expect investment to drive polyester production capacity to expand significantly. Following the increase of 4 million tons last year, 7 million tons of new capacity will be put into operation this year, and the total capacity is about 32 million 750 thousand tons.


    Lai Tianming, editor in chief of China chemical fiber information network, said that the concentrated release of the capacity of the chemical fiber industry in recent years has greatly affected the market, and the demand has indeed shrunk, but the proportion is not large. Last year, the capacity of many enterprises has been released. Due to the homogenization of products in chemical fiber industry, the market competition has become increasingly fierce after the expansion of capacity. This year, many factories have slowed down the pace of expansion, opening the bow is hard to get back to the arrow, some enterprises reluctantly launched. Some people in the industry expect that the low level of the chemical fiber industry will take 2 to 3 years to digest, and the premise of overcoming the difficulties is that the enterprise will control the output actively. Lai Tianming believes that this round of chemical fiber industry downturn needs 2 to 3 years of digestion period, and the premise is to take the initiative to control production. He believes that 2012 is a relatively difficult year for chemical fiber weaving. On the one hand, the cycle of demand downturn is relatively long, the price cycle of terminal clothing continues, and the high price of domestic and foreign cotton will lead to the loss of overseas orders and export shrinkage, while the demand for domestic demand links with the demand for domestic textile demand is significantly reduced. On the other hand, from the concentration of release capacity, the industry itself has periodic adjustment requirements. In addition, the increase in inventory and irreversible increase in labor costs will increase the business burden of enterprises.

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