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High speed expansion of polyester capacity
Sep '10
Earlier this year, with price increase of raw materials and continued fall of upstream polyester market, polyester filament market fluctuated slightly downward.

After entering April, trading atmosphere of polyester filament maintained a good momentum with support from crude oil, at the same time, polyester filament price rose week after week being driven by strong demand from downstream market, polyester filament prices showed a sharp increase.

Bu by the end of the second quarter, polyester filament price stabilized from the decline in early June, due to the electric consumption curbs applied in Zhejiang Province.

Currently, the domestic industry is still expanding production capacity of polyester industrial yarn and the increased production capacity will have a direct impact on market stability.

According to preliminary statistics, China will at least have about 420,000 ~ 450,000 tons / year capacity added in between 2010 and 2012, the impact of which will be felt by major polyester producing companies.

Some enterprises with obsolete production equipment will exit from the market, due to losses and lack of competitiveness. It can be predicted that the long saturated and ordinary high-strength polyester industrial yarn market will face fierce competition in 2010.

According to experts, the only way for business survival is to vigorously develop more high-end and differentiated products.

Fibre2fashion News Desk - China

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