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China's investment in polyester production to go up
05
Jan '12
About 75 percent of global PTA demand arises from polyester fibre, with the rest from filament, chips and film.

In 2011, global polyester production capacity, including filament, fibre and yarn, increased rapidly to 67 million tons.

China ranks first in the world with capacity to produce 34 million tons of polyester. The country also accounts for 52 percent of global PTA consumption.

In 2010, China's domestic demand for polyester increased by 17.5 percent year-on-year and in 2011 it is likely to increase by 17 percent year-on-year to 27.5 million tons.

In the next three years, China will continue to invest in adding new polyester production capacity in the country. From 2012-2014, polyester production capacity in China is likely to increase by 3-4 million tons every year. This would help absorb part of the new PTA supply.

Currently, however, the financial slump in the US and European markets would result in reduced demand for Chinese textiles and garments and hence, the industry is not likely to maintain the high operating rate of 2010-11. In 2012, the operating rate of polyester manufacturing industry will see a gradual decline.

Fibre2fashion News Desk - China


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