Home / Knowledge / News / Textiles / Second quarter has surpassed expectations – Indorama Polymers
Second quarter has surpassed expectations – Indorama Polymers
16
Jun '09
In recent days, prices of petrochemical products have spurted sharply and in case of some, have even touched highs, reached six months back. This is very good news for an industry which has been cutting output with regularity, since even before the economic crisis unfolded. To get a clear idea of the conditions prevailing in the global petrochemical sector, Fibre2fashion spoke to a senior official from Indorama Polymers Public Company Limited, Thailand, which is a group company of the Indorama group.

Indorama Group today is an emerging market specialist with plants in seven countries — Indonesia, Thailand, India, Sri Lanka, Turkey, Nigeria, Egypt and representative offices in USA, UK, and Singapore. Indorama is a global manufacturer of diversified industrial products — Polyolefins (Polyethylene and Polypropylene), Polyesters and Intermediates (Purified Terephthalic Acid, PET Resin, Filament Yarns and Staple Fibre), Spun Yarns, Fabrics and Medical Gloves.

Demand and in turn prices have increased considerably, since the second fortnight of March 2009, so we asked him whether he expects this trend to continue in to the second and third quarter, to which he said, “The second quarter of 2009 is on an uptrend and expect to remain on the uptrend or, as it is and the volumes have also increased which reflects the products linked to consumer staples have not seen demand drop but for discretionary items like automobiles and electronics, demand has dropped sharply. The financial crisis and liquidity crunch, as well have resulted in capacity closures, particularly in North America and Europe, due to which operators in production have seen higher utilization rates”.

“Refining as well as operating margins within the value chain had highly deteriorated in the last few months and with the spurt in prices, have they regained 2008 levels, was the next question we asked him to which he replied by saying, “There has been margin improvement in the Polyester chain, with the exception of MEG”. To a question whether, all their plants were running at optimum capacity, he replied in the affirmative by saying, “All our plants are operating at full capacity in Asia, Europe and USA”.

Next we asked him a very crucial question as to how would they tackle a hypothetical situation, if the petrochemical markets were to fall once again, to which he explained by saying, “The sharp fall post-July, 2008 is an exception where crude prices fell by US $100 a barrel from $147 per barrel to less than $50 per barrel in a matter of 4-5 months. It took 4 years for crude oil to move-up from $40 a barrel to $147 a barrel. This happened due to a liquidity crisis resulting in significant de-stocking. In the Polyester chain, prices change from month to month and there are price movements which can be addressed through inventory management”

We concluded the interview by asking him as how do they foresee the second and third quarter of 2009, to which he crossed his fingers and said, “The first quarter has been better than expected and until now even the second quarter has surpassed expectations”.

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Business wire

Textiles | On 28th Jul 2017

Taiwan launches new products at Outdoor Retailer show

The Taiwan External Trade Development Council (TAITRA) hosted the...

Textiles | On 28th Jul 2017

Clariant, Huntsman present update on planned merger

Clariant and Huntsman Corporation have presented a first update on...

Fashion | On 28th Jul 2017

Kering’s first half consolidated revenue up 28.2%

Kering has announced a consolidated revenue of €7,296.2 million for...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eamonn Tighe
Nature Works LLC

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

Wendell Rodricks
Wendell Rodricks

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sanjukta Dutta
Sanjukta's Studio

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

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

July 2017

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
61.1%
No
22.2%
Skip
16.7%

Total Votes: 18

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
33.3%
No
44.4%
Skip
22.2%

Total Votes: 18

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
83.3%
No
5.6%
Skip
11.1%

Total Votes: 18

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
50.0%
No
11.1%
Skip
38.9%

Total Votes: 18


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



X