Man-made sector of Europe is slowly recovering in 2006; however the continent should not ignore threats of global overcapacity, stated Omer Sabanci, Head of CIRFS, representative body for European man-made fibre industry.
Man-made fibres market, valued at $13 billion a year, has been adversely affected due to disputes between China and the European Union (EU) over the large volumes of textile imports by the latter.
As a result, sales volumes has slipped 8 percent in 2005, while the preference for cheap Chinese goods has 'helped' stock at higher levels.
Now with quota expiry in Europe and adjustments for large volume of Chinese imports, leading fibre maker Sabanci hopes that market would become stable in 2006.
European players should not get disappointed as they have benefits of proximity to textile consumers, favourable logistics and cost-effective facilities.
However, the EU fibres industry should also address polyester, which is oversupplied by more than 12 M ton/year.
marketing@alchempro.com
