Interviews
Escalating Raw Materials' Costs spoil festive mood of global MMF producers
14 Dec '09
8 min read
Ms Sunantha Phodong, New World International Ltd- Thailand, told us that as industry enters into last month of the year, usually people prepare for their holidays on Christmas/New Year as a result sales can drop by 50% in Europe, east Europe & USA, but in Asia so far still market demand is increasing. She also noticed that prices of chemicals and main raw materials like as, PX, PTA & MEG are still high, which points up to pre-purchase for next year inventory. She also thinks that growing demand of AGRO Fibres day by day may impact the growth of PSF.
Mr Rod Hann, Marketing Manager, Australian Synthetic Fibres Pty Ltd, sees the prices of raw materials i.e. polypropylene, styrene etc either decreasing or remaining quite steady. He hopes this trend will continue as Australia has a very high dollar against the US$. He thinks, Australian have faired quite well in relation to the rest of the world when it comes to crisis upshots. He claims Australia to be the only one of a few countries in the world increasing interest rates. He is also optimistic for the second part of this financial year.
As a trend forecast, Mr Onay Yildiz, Director, Polystar Tekstil–Turkey, stated that technical fibers such as aramides, carbon etc are becoming more and more important as the war threats and technological developments as well as regulations will lead increase in technical fibers. However volume wise, the consumption of the total technical fibers is quite minor in terms of the total fibers out put. The raw material manufacturers in Polyamide 6.6 are quite limited to couple of very big players and in case of high automotive demand polyamide could simply be short (in PA6.6). As for Polyamide 6, there are much more manufacturers even in Far East and this is highly dependent on Caprolactam prices. Making another point, he reveals that the margins are getting decreased dramatically thus some takeovers of manufacturers by big investment funds can happen, he predicts. He also added that organic concept is getting more and more popular however this tendency can not create bulk demand. During the economic crisis, the consumers consume less and the market moves to price sensitive items thus the production in Far-East has become popular.
As for some standard fibers like polyester, Far East will remain to represent bulk volume. He specified that the effect of crisis will continue at least till first half of 2010. Those who are focusing on market demands and less overheads and are more flexible in production will be effected less, however especially conventional polyester-viscose manufacturers will suffer and this kind of items are for sure to move Far East. He further divulged that his company, since dealing with more technical fibers, is not affected by the crisis so hard. However, fashion items business that his company deals from Europe has definitely suffered.
Mr Rod Hann, Marketing Manager, Australian Synthetic Fibres Pty Ltd, sees the prices of raw materials i.e. polypropylene, styrene etc either decreasing or remaining quite steady. He hopes this trend will continue as Australia has a very high dollar against the US$. He thinks, Australian have faired quite well in relation to the rest of the world when it comes to crisis upshots. He claims Australia to be the only one of a few countries in the world increasing interest rates. He is also optimistic for the second part of this financial year.
As a trend forecast, Mr Onay Yildiz, Director, Polystar Tekstil–Turkey, stated that technical fibers such as aramides, carbon etc are becoming more and more important as the war threats and technological developments as well as regulations will lead increase in technical fibers. However volume wise, the consumption of the total technical fibers is quite minor in terms of the total fibers out put. The raw material manufacturers in Polyamide 6.6 are quite limited to couple of very big players and in case of high automotive demand polyamide could simply be short (in PA6.6). As for Polyamide 6, there are much more manufacturers even in Far East and this is highly dependent on Caprolactam prices. Making another point, he reveals that the margins are getting decreased dramatically thus some takeovers of manufacturers by big investment funds can happen, he predicts. He also added that organic concept is getting more and more popular however this tendency can not create bulk demand. During the economic crisis, the consumers consume less and the market moves to price sensitive items thus the production in Far-East has become popular.
As for some standard fibers like polyester, Far East will remain to represent bulk volume. He specified that the effect of crisis will continue at least till first half of 2010. Those who are focusing on market demands and less overheads and are more flexible in production will be effected less, however especially conventional polyester-viscose manufacturers will suffer and this kind of items are for sure to move Far East. He further divulged that his company, since dealing with more technical fibers, is not affected by the crisis so hard. However, fashion items business that his company deals from Europe has definitely suffered.
Fibre2fashion - News Desk, India
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