Home / Knowledge / News / Textiles / Shocks & adjustments projected for petrochemical sector
Shocks & adjustments projected for petrochemical sector
Jan '09
The chemical fibre raw materials or the petrochemicals industry is an important component of the textile industry. Purified Terephthalic Acid (PTA) of aromatic category, Ethylene Glycol of ethylene category and Paraxylene are main raw materials for synthetic fibres. In late 2008, with crude oil prices in international market falling from a record high to new record lows, the chemical fibres market also experienced ups and downs.

In 2009, this market is expected to undergo further shocks and adjustments, due to the influence of combined factors both bullish and bearish. The market trends depict, a not so optimistic outlook in 2009. Since the country's total textile production capacity is very large and dependence on the markets of US, EU and Japan too high, in the current global economic crisis, exports from the sector are expected to be affected to a large extent in 2009.

This is expected to directly affect the demand for chemical fibre raw materials. Domestic new capacity of Paraxylene in 2009 is expected to reach 2.14 million tons, a vast majority of which is projected to be sold in domestic market and the rest to manufacturers of PTA in East Asia and the global consumption is expected to go down after having reached its peak in 2007.

New capacity expansions for PTA are expected to slowdown in 2009, but a still a few capacities which have competed more than 75 percent of their installations in 2008 are expected to go on stream in 2009, of which Chinese new capacity output of PTA is projected to be around 800,000 tons.

New suppliers of Ethylene Glycol will face further pressures as global production capacity will be excessive. The Middle East region will become the focused area of production capacity expansion, and its main target market will be China. China is expected to import 5.48 million tons of ethylene glycol in 2009, an increase of 2.4 percent over the previous year; leading to a grim market situation in China.

Fibre2fashion News Desk - China

Must ReadView All

Apparel/Garments | On 21st Oct 2016

China’s garment retail sales grow 7.2% in Jan-Sept ’16

Retail sales of garments, footwear, hats and knitwear of Chinese...

Mike Preston, executive director of the Arkansas Economic Development Commission (AEDC), signing MoU with Tang from Suzhou Tianyuan Garments company. Courtesy: Government of Arkansas

Apparel/Garments | On 21st Oct 2016

Suzhou Tianyuan to open $20 mn garment factory in US

Suzhou Tianyuan Garments company, a Chinese manufacturer of casual...

Textiles | On 21st Oct 2016

Pakistan’s textile exports fall 5.96% y-o-y in Q1 FY17

The value of textile and garment exports made by Pakistan decreased...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Evelyne Cholet

‘France had a reputation of being big in new ideas, but poor in marketing...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Kevin Nelson

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

Judy Frater
Somaiya Kala Vidya

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search