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

Textiles | On 23rd Mar 2017

South Korean Samil Spinning acquires Buhler Quality Yarns

South Korean yarn producer Samil Spinning has acquired US based...

Apparel/Garments | On 23rd Mar 2017

E-retailers to pay up to 1% TCS under GST

E-retail marketplaces will need to deduct up to 1 per cent tax...

Textiles | On 23rd Mar 2017

Lanxess to expand chemical intermediates capacity

The Advanced Industrial Intermediates business unit of German...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

news category


Related Categories:
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search