Good signs for MMF sector across globe

26 Nov '09

7 min read

He acknowledges the festive season also given the boost to the industry. In context to coming quarter performance, as far as tyre industry is concerned, he envisions players under pressure of cost because of substantial increase in cost of raw materials viz items like synthetic rubber, natural rubber, carbon fabric etc. And this, he foresees to be definitely putting tyre industry in complex situation where on one hand companies cannot increase price and on other hand cost of raw materials going up. Thus, situation will put tyre industry into trouble. Its profitability would be under crunch in next two quarters in offing.

Ms. Cammy Lou, Mngr Mktg, New Fibers Textile Corporation - Taiwan, believes market is not to witness any peculiar trend and will carry on with existing conditions as affected by economy downturn. However, according to her the coming quarters would show better performance than corresponding quarters of year 2008-2009.

Mr. Kun-Nung Chen, GM, San Wu Textile Company Ltd-Taiwan, thinks there shall be a gentle growth in next ten years, especially, in countries viz China, India, Brasil and Russia. He finds industry to be freeing from clutches of economic crisis eventually. However he believes times uncertain, so companies need to do best to cut cost and create max chance for good business.

Answering our queries Mr. Jayesh Khatri, Global Head Mktg,Caliper Trading- Dubai, reveals his company to be trading in the Middle East markets, and sourcing from China, Taiwan, USA etc. In his stance the current movements in global polymer industries are improving compare to last year and till December shipments / deliveries prices will look upward. He also predicts Jan 2010 onwards a little slow down if crude will not support. In connection to economic downturn, Mr. Khatri divulges real estate to be majorly affected sector in UAE. There are many projects on hold and existing they are trying to complete as soon as possible. He also expects second half of current fiscal improved to previous year. He understands Indian economy bettering and industries doing pretty healthy business in the domestic terms.

Mr. S. Hiraki, Head Mktg, International Imex Company -Syria, retorts on these questions differently. He envisages the current times to be very tough and worries if the same situation persists for long, high prices and shortage of demand will worsen market situation and business thereof. According to him crisis still exists and imposing difficulty to market raw materials. Coming fiscal is not predictable but the prices are likely to drop sharply cause of shortage in demand and excess production. This in turn is likely to see makers curbing their production capacities.

Mr. Sugondo Sudradjat, Director Operations, PT Pacific Fibretama – Indonesia, shares that since the number of consumers grow steadily, the demand of fibre will increase as well. In order to survive a flexibility to produce variety of products would be essential. In his lookout, the industry is still confronting with economic instability and constraints. But,coming year seems to be more bright and better in financial context.

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