Home / Knowledge / News / Textiles / Future of chemical fibre markets looks bleak
Future of chemical fibre markets looks bleak
13
Oct '08
Chemical fibre manufacturing companies are implementing a new wave of production cuts in their operations. This is mainly due to a rising inventory level of stocks.

China's largest manufacturer of purified terephthalic acid plant (PTA) Zhejiang Hualian Sunshine Petro-Chemical Ltd. has been forced to stop production recently, due to huge losses and failures of its operation in futures market, highlighting a domino effect of collapse in international crude oil prices and as downstream enterprises have frozen buying and are adopting a wait & watch attitude.

Zhejiang Hualian Sunshine Petro-Chemical Co., Ltd. has been set up only five years ago, with an annual PTA output of 2.0 million tons and is China's largest PTA plant. Xianglu Petrochemical follows in second place.

According to analysts from the industry, due to the looming shadow of global economic recession, currently the overall rate of polymerization operation rate in the mainland is only 50-60 percent.

It has been reported that Zhejiang Hualian lost nearly Yuan 1 billion last year due to poor profits from its PTA operations while its total liabilities soared to Yuan 9.5 billion.

But alongside Zhejiang Hualian also operated in the futures market and a failure in the same led to liquidity problems in September as a result of which it was forced to shut down three of its PTA plants leading to an uproar in the chemical fibres market.

Market analyst's say that the drop in demand of PTA will not see improvement in the short-term so a major re-shuffle in the petrochemical fibre market in China can be expected in next two years.

Fibre2fashion News Desk - China


Must ReadView All

Turkish-Algerian JV to set up textile unit in Relizane

Textiles | On 17th Jan 2018

Turkish-Algerian JV to set up textile unit in Relizane

Construction of one of Africa's largest textile production...

Courtesy: Indorama Ventures

Textiles | On 17th Jan 2018

IVL, Huvis to enter JV for Low Melting Fibre plant in US

Indorama Ventures Limited (IVL), a global chemical producer, and...

Future Group to set up garment manufacturing in Bengal

Apparel/Garments | On 17th Jan 2018

Future Group to set up garment manufacturing in Bengal

Kishore Biyani-led Future Group is going to set up a garment...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Lynda Kelly
Suominen Corporation

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.8%
No
13.5%
Skip
17.7%

Total Votes: 96

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.5%
No
29.2%
Skip
7.3%

Total Votes: 96

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.5%
No
9.4%
Skip
3.1%

Total Votes: 96

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.3%
No
8.3%
Skip
9.4%

Total Votes: 96


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