Home / Knowledge / News / Textiles / Chinese polyester sector margin dips on capacity expansion
Chinese polyester sector margin dips on capacity expansion
Mar '14
Mr. Gao Younian (courtesy: CCF Group)
Mr. Gao Younian (courtesy: CCF Group)
The polyester industry in China is witnessing decline in profit margins due to high-speed capacity expansion, according to Gao Younian, Director of synthetic raw materials, Sinopec.
Presenting a report on ‘PX-PTA supply/demand outlook’ at the 13th China Hangzhou Chemical Fibre Forum 2014, Mr. Gao said the investment growth in Chinese polyester industry is expected to slow in the coming years.
He further said that the paraxylene (PX) industry is expected to reverse its direction in 2014 as supply growth is faster than demand.
Analysing the purified terephthalic acid (PTA) outlook, he said demand is lower than expected. However, monoethylene glycol (MEG) supply-demand is tightly balanced at present, and coal-to MEG is expected to dominate the market in the future, he added.
Presenting his report on ‘Supply/Demand relationship of polyester industry’, Lai Tianming, general manager of Zhejiang Huarui Information Consulting (CCFGroup), said polyester output was in a negative growth in the first quarter of 2014. However, the industry’s yearly growth rate is expected to be at least around 4.5 percent this year, he said.
In his report on ‘Synthetic gas-to-ethylene Glycol Technology’, Gao Chao, president of HighChem Company Limited, the production of MEG based on synthetic gas and methanol is gradually increasing due to the development of the coal chemical industry. He estimated the global polyester demand to grow at an annual rate of seven percent.
Peng Yang from Ningbo Mitsubishi Chemical Company suggested that the Chinese PTA players cut production and improve financing ability to better meet the challenges.
Xu Xinghua, general manager of Ningbo Fude Enengy Co. Ltd. gave his speech on ‘Industrialized application of methanol-to-olefin (MTO) technology’. According to him, MTO technology can ease the shortage of naphtha and promote diversification of raw material resources.
He was of the opinion that the successful industrialization of DMTO technology may create a new business era that would replace the petrochemical industry with coal-based chemical industry, and diversify the production methods of MEG.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Cindy McNaull

We have broad range of options in durable fabrics

Poojaa Kumar Deepak

Zeven's performance sports apparel is designed for the Indian body type,...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search