The loss-making predicament of the chemical fiber industry is difficult to improve in the short term
The loss-making predicament of the chemical fiber industry is difficult to improve in the short term
The chemical fiber industry suffered a loss of 24.13% in the first half of the year. Industry insiders pointed out that due to the accelerated expansion of production capacity and the slow start of downstream demand, the prosperity cycle of the chemical fiber industry has been significantly shortened. In the first half of the year, the entire chemical fiber industry suffered an industry-wide loss of 24.13%. It is difficult for the overall industry to face a fundamental change in the short term.
The China Chemical Fiber Industry Association recently released an analysis report on the operation of the chemical fiber industry in the first half of the year, which shows that the output and export growth of the chemical fiber industry in the first half of the year have slowed down significantly, the industry’s operating rate has dropped significantly, the industry’s economic benefits have dropped significantly, and the entire industry has suffered a loss of 24.13%.
Ren Jing, a textile industry analyst at Guotai Junan, pointed out that the main reason why the chemical fiber industry is in trouble is the sluggish downstream demand. The textile industry is in difficulty under the influence of multiple unfavorable factors such as accelerated RMB appreciation and rising labor costs, which has dragged down the prices of most products in the chemical fiber industry to continue to fall. , the profitability and profits of various industries have dropped significantly, and the business cycle of the chemical fiber industry has shortened significantly. Although the Ministry of Finance and the State Administration of Taxation decided to increase the export tax rebate rate for some textile products from August 1, 2008, they still cannot change the loss-making situation of most textile companies.
The Chemical Fiber Industry Association predicts that synthetic fiber raw materials will remain at a high level in the second half of the year. Affected by this, the price of synthetic fiber products will also run at a high level. The price of viscose fiber has been adjusted deeply, basically reaching the limit of enterprise tolerance. It is expected that there will be little room for decline in viscose. The application field of filament yarns is shrinking. It is estimated that filament yarn companies will be very difficult to be affected by macroeconomics throughout the year, and it is difficult for textile demand for chemical fibers to significantly increase.
Ren Jing said that when the industry as a whole is in another downturn, industrial structural adjustment and differentiated development are urgent. Improving the differentiation rate of fiber and the added value of products are important means to improve the profitability and competitiveness of the industry, and are also the main direction of future industry development. Especially when the industry cycle is declining and the economy is declining, differentiated fiber varieties can better avoid industry risks.
According to a report from the Chemical Fiber Industry Association, chemical fiber output from January to May was 10.04 million tons, a year-on-year increase of only 7.4%, and the growth rate decreased by 10.49% year-on-year. Export volume during the same period was 753,000 tons, a year-on-year increase of 27.98%, but the growth rate dropped by 20.72% year-on-year. The total profit achieved in the first five months was 3.718 billion yuan, a year-on-year decrease of 26.77%, a net decrease of 1.359 billion yuan, and viscose filament companies suffered a comprehensive loss. V6F7nD
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