Fiber Market
The market trend has unabatedly shifted toward manmade fibers that hold a 67% share at present, up from 54% in 2000. This trend will continue the more as ICAC expects negative impacts from the new Chinese cotton policy and the cost difference to polyester.
A recently published report titled 'The Fiber Year 2014', the world survey report on textiles & nonwovens, states that the fiber production #
Link from Textiles to Petrochemicals
The strategic advantage of this textile yearbook is the link to the upstream petrochemical sector. Massive investments, in particular in PR China, will result in an excess capacity in the polyester chain. The both PX and PTA industries will suffer from overcapacity at unprecedented size. They both will increasingly be confronted with restructuring measures. Nonintegrated producers will struggle to achieve economically viable operating rates. The scope of price increases will also be extremely limited due to the overcapacity.
Furthermore, above-average capacity additions of caprolactam, precursor to nylon fibers, will similarly lead to oversupply and initiate adjustments for mainly exporting manufacturers.
Outlook 2020
Weakening dynamics in population growth and disposable income in advanced economies, which at this stage consume above-average textile volumes, will soften world demand growth rates. This necessitates knowledge and detailed information about single markets and their surrounding conditions. A reduced average annual growth rate of around 2.5% is anticipated until end of the decade.
The Fiber Year 2014
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