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Chinese chemical fibre unit capacity rates alarmingly down
May '12
Some chemical fiber enterprises generally hold high inventories, as sales are sluggish. Some enterprises maintain their inventories for about 30 days, which is approximately 2 times over normal.

The operating rate of enterprises has mostly declined to 70-80 percent due to stock pressures. As downstream textile companies still hold higher inventories.

Textile companies say that sales of pure cotton and blended polyester/cotton yarn are acceptable at low price, but sales of fabrics are not ideal.

Inventories of yarn and fabrics started to increase since 2011, enterprises have actively consumed yarn inventory since September to October during the year, but fabric inventory still remains high.

From the statement of listed textile enterprises, fabrics stocks have partaken larger funds of enterprises and for some, accounts for 50 percent of value of inventories.

Experts say, high fabric inventory reflects the downturn in terminal demand of textile and apparel chain.

Fibre2fashion News Desk - China

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