Good signs for MMF sector across globe
Manmade fibres sector is the pillar to textiles and related industry. Statistics say the global share of MMF consumption is around 60% and more. Sparing India – a country with tropical climate and ample of cotton production that determines natural fibre consumption especially cotton produces in country to be high, the consumption of synthetic fibres dominates over its contender sector.
However, analysis also points the want for MMF, in particularly polyester fibres and its blends, rising gradually as the cotton prices getting dearer shall inevitably improve polyester consumption amidst shrinking pockets of manufacturer as well as consumers afflicted by crisis.
In the current economic crisis, how will the MMF industry cope up? What are the new emerging trends in the industry?..etc are some of the interrogations that we interviewed the industry dealers with.
A range of responses were found. As usual a mix of opinions prevails in the market.
Mr Leo Hofstetter, Mktg Mngr, Nexis Fibers AG- Switzerland, forecasts market trends in Europe. He predicts that industry
shall see a steady growth in PA6.6 (+3 %/y): Cap ply for high performance tires as well as substitution of PA6 by PA6.6. Industry has witnessed big tire manufacturers moved production from Western to Eastern Europe. For Russia, he visualizes a switch from PA6 to PES for carcass, Cap ply PA6.6 and stable and consolidated market in Europe. Commenting on risk of crisis he mentions that as his business is strongly focused to the automotive industry, he has seen economical crisis influenced the business related to original equipment (new cars) but less to the replacement market. If people don't buy new cars, at least they have to renew the tires. This part of the business reflects approx. 75 percent. He also counts the current time to be fortunate as industry has been noticing an increased demand during the last few months. Therefore an improved result can be expected for coming quarter.
An official from Apollo tyres-India, opines that last two quarters industry has seen price increase very steadily and this has been happening from all sections of companies whether from India or outside. In his views, presently, it is very difficult to reveal exact information of price increase to the extent of cents, in fact, people are pondering on how various sectors of market behaved, and it is something that needed to be understood.
But definitely price increase has happened, and it is because of something to do with financial health of certain companies which was not good. These financial challenges have further triggered the price increase. Certain important sources that have been supplying to India had financial health not good and some companies who needed buy goods from those suppliers felt uncertain and booked orders at higher price, and thus, resulted into the price increase in India.
He further details that in India during past few months of
crisis, people held on to their buying decisions. He noticed the major job loss and such aftermaths happened in countries like US and others. In India this scenario did not prevailed. There have been some few instances but majority of people were safe with their job. So, people just had to hold on to their buying decisions but unlike the people of other nations, Indians had little to no financial crunch. Luckily people here don't use much credit card so that they are not been drained up back to the
bank, and that's why the banks had no problems in spite of all recessionary upshots that happened outside the India. Moreover, the growth quarter after quarter is seeing increase in production
which is a good sign.