New record fiber shipment volume in Q2 – Lenzing

22 Aug '12

7 min read

In the core fiber segment, the Business Unit Textile Fibers registered an ongoing strong demand in all markets in the light of the expected lower selling prices for fibers. Textile demand for TENCEL fibers developed particularly gratifyingly, for example for soft denim applications, sportswear and home textiles.

In the first half of 2012, the Business Unit Nonwoven Fibers also succeeded in further increasing sales volumes from the prior-year level, although Lenzing nonwovens were not immune to the downward price trend for viscose fibers. Whereas newly-installed production capacities in Europe for wipes ended up leading to overcapacity, the market in the USA showed itself to be stable. The Asian nonwovens sector, particularly in China, continues to clearly be on a growth path.

The average fiber selling price of the Lenzing Group bottomed out at EUR 2.03 per kilogram in the first half of 2012, which represents a decline of about 12% from the very strong first half of 2011 with all-time high prices in the entire fiber industry. However, compared to the fourth quarter of 2011, the average fiber selling price in the second quarter only dropped by 5%, and remained unchanged compared to the first quarter of 2012.

“The first half of 2012 demonstrated that Lenzing fiber prices develop much less cyclically than cotton prices and spot market prices for viscose fibers produced by our competitors“, explains Friedrich Weninger, Member of the Management Board and Chief Operating Officer responsible for the fiber business. “This is the result of our consistent quality orientation, the high share of specialty fibers and the above-average level of service provided by Lenzing”, he adds.

The Segments Plastics Products and Engineering developed solidly. The Segment Plastics Products profited from strong demand on the part of the construction industry, for example high-tech multilayer laminates for the cladding of insulated pipelines and ventilation ducts as well as laminated films for insulating materials. In the Segment Engineering the order intake was at a high level throughoutthe entire first half of the year.

A continuation of the consolidation phase in the global fiber industry is expected in the second half of 2012. The textile pipeline is well filled due to the limited dynamics provided by private consumption in the industrialized countries. As a consequence, the quick reduction of cotton inventories which are currently at a disproportionately high level will likely take longer than expected.

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