“Inquiries for rayon staple used for flame-retardant bed mattresses for shipment to the US have been brisk since the second half of the fiscal year ending in March 2007”, says Yoshitsugu Hirata, Executive Director, Daiwabo Rayon Co Ltd.
In the US, the enforcement of laws to obligate use of flame-retardant product will start in July all over the country. Consequently, the demand for Rayon capable of coping with flame-retardant requirements has risen. In the US, a Finnish producer has taken an early lead in this particular segment; however, Daiwabo Rayon has also expanded order bookings against a backdrop of high evaluations given to its performance in meeting quality and delivery requirements.
Hirata points out that company's carefully calculated responsiveness to meet user's needs like quick functional property inspection has also received high evaluations from customers. Inquiries from Europe are also firm. The supply-demand balance of staple fiber has turned for the better on a global basis. Furthermore, another contributing factor to firm exports is that exports of fiber for spinning which previously were unprofitable because of a weak yen have returned to the break-even line again.
Because of rising production costs resulting from advancing pulp market prices, the company has increased the selling prices of staple fiber to absorb higher costs since the second half of last year. Out of the company's monthly output of 500 tons, the export ratio is less than half. The company has no intention to export in the future to the extent of worsening its profitability. It is the company's policy to expand exports steadily with sophisticated fibers, stable quality and accurate delivery as its weapons.