Home / Knowledge / News / Textiles / Chemical fiber manufacturers cut production to offset losses

Chemical fiber manufacturers cut production to offset losses

02
Jul '08
Rise in oil prices has had a direct effect on polyester raw material PTA, for which prices have, quite evidently, scaled up as well. However, demand from the down stream sectors have remained weak making it difficult for manufacturers to pass on their burden to these enterprises.

In situations as complex as these, more production leads to more losses and the only alternative would be to cut down on outputs. This is exactly what polyester manufacturers in Taiwan are doing.

According to International PTA producer, Mitsubishi Chemical, contract price for July has reached US $1,380 per ton, up by $200 per ton. Based on these estimates, price of raw fiber could very well increase by a minimum of 7-9 Taiwan yuan.

Polyester industry has observed that the cost of production is mounting continuously and to top it up, electricity price for June has already been charged on summer rates and for July, the prices are expected go further high by 10 percent.

It is very important that polyester products incorporate these hikes but unfortunately, June offers gained by a mere 2-3 yuan per kilogram. On the other hand, because of price surge in essential raw materials, prices of raw and manufactured fibre are bound to increase in the future.

As of now, domestic chemical fiber manufacturers in Taiwan have resorted to large scale annual maintenance and production cuts for mitigating losses but this would only be a temporary solution.

Fibre2fashion News Desk - China


Must ReadView All

Pic: Shutterstock

Textiles | On 14th Dec 2019

No retroactive anti-dumping duty on US PTY import from PRC

As the US International Trade Commission has not found critical...

Pic: Shutterstock

Retail | On 14th Dec 2019

7000 Hong Kong retail establishments may close down: HKRMA

Some 7,000 licensed retail establishments out of 64,000 in Hong Kong...

Pic: Attune

Information Technology | On 14th Dec 2019

Attune delivers SAP S/4HANA for fashion brands

Attune has successfully completed multiple SAP S/4HANA for fashion...

Interviews View All

Top executives, Textile Industry

Top executives
Textile Industry

We will move away from mass production to production in micro-factories

Karan Toshniwal, Orange O Tec

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Milva Morani,

Milva Morani

Brighi Technologies began in 1970 with trading and repairing sewing...

Fabio Grandis,

Fabio Grandis

Italian company Grandis SRL has been operating in the textile industry for ...

Fan Liyuan,

Fan Liyuan

Chinese company Jiangsu Yingyang Nonwoven Machinery, established in 1993,...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


December 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search