At present, overcapacity of recycled chemical fiber and poor downstream demand are the main reasons affecting the market of recycled chemical fiber. In the long run, intensified competition in the industry will inevitably lead to the elimination of production capacity. Supply and demand may improve next year, but still Supply exceeds demand.
In the past five years, the supply of recycled chemical fibers has always exceeded demand. From 2015 to 2019, The contradiction between supply and demand of recycled chemical fiber continues to ease, and the balance between supply and demand continues to shrink, shrinking from 290,000 tons in 2015 to 120,000 tons in 2019; mainly due to the imbalance between supply and demand of recycled chemical fiber, it is very difficult for manufacturers to operate, coupled with the shortage of raw materials , prompting the accelerated elimination of some backward production capacities, and the industry’s supply and demand relationship continues to improve towards a balanced state. It is expected that in 2020, the recycled chemical fiber industry will still have oversupply and the balance between supply and demand will continue to narrow.
In terms of supply, the supply of recycled chemical fiber in 2019 was 4.62 million tons, a decrease of 810,000 tons or 14.92% compared with 2018. This was mainly due to the shortage of raw materials and large-scale production of recycled chemical fiber manufacturers. The price impact of chemical fiber and imported chemical fiber has made it difficult to operate, and it has been in a state of loss for a long time. Some manufacturers have reduced production for a long time, and a few manufacturers have even stopped production and closed down. The industry’s start-up has declined seriously, the output of recycled chemical fiber has dropped significantly, and the import volume has increased, but the quantity is limited.
In terms of demand, the demand for recycled chemical fiber in 2019 was 4.4 million tons, a decrease of 800,000 tons or 15.38% compared with 2018, mainly due to the uncertainty in Sino-US trade that intensified the market Concerns have reduced some import and export demand. The instability of the international situation has put greater downward pressure on the domestic economy. Domestic consumption power has declined. Coupled with the price impact of large chemical fibers, recycled chemical fibers have lost part of the demand.
From the perspective of 2020, competition in the recycled chemical fiber industry will intensify, production capacity may continue to be eliminated, and the supply of raw materials is limited, manufacturers lack confidence, construction starts may continue to decline, and output is still likely to decline. In terms of imports, The supply of goods in some regions has certain price advantages, but the overall import volume is limited, which makes it difficult to significantly supplement the supply of recycled chemical fibers. It is expected that the total supply of recycled chemical fibers will continue to decrease in 2020; on the demand side, affected by the uncertainty of the international situation and domestic economic situation, Terminal consumption power has weakened, and the consumption of textile products may continue to decline. It is difficult to improve the downstream consumption of recycled chemical fibers, and exports will also face heavy pressure. Zhuochuang expects that the total demand for recycled chemical fibers will continue to decline in 2020; comprehensively, it is expected that in 2020 The contradiction between supply and demand for recycled chemical fiber will be alleviated, and supply will still exceed demand. Recommended attention: Recycled Polyester Annual Report. Zhuochuang Information launched the “2019-2020 China Recycled Polyester (PET) Market Annual Report” based on 10 years of research experience and professional observations on the Chinese recycled polyester market. This report comprehensively analyzes the industry analysis and data statistics of recycled PET bottle flakes and recycled chemical fiber, comprehensively interprets the recycled polyester market price, start-up, production and sales, inventory, profit, import and export and other industry data, and provides a detailed interpretation of industry hot trends in recent years. We also predict the future development opportunities and development ideas of the recycled polyester market to help you formulate a more competitive business strategy in the new market environment
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