In 2006, China's polyester staple fiber production reached 5.8216 million tons, an increase of 5.68 percent over 2005. According to selected statistics, PSF production and marketing rate exceeded 100 percent. Inventories dropped 33.07 percent compared with 2005. PSF exports marked 262,900 tons, an increase of 40.31 percent on year.
Last year, China's terylene filament industry was stable in operation, overall scale reasonably rebounded. Equipment demand changed from quantity-oriented trend into technical efficiency. Enterprises quickened technological transformation, investment direction the industry developed towards high-tech and differentiation fiber varieties, but in the fourth quarter of 2006 investment rebounded.
In 2007, raw material supply of PSF industry will ease up, but terephthalic acid (PTA) price trend and its impact on polyester production should receive high attention. Especially after the listing of PTA futures contracts, the impact of futures prices on spot market is yet to be analyzed.
Polyester production continued to maintain rapid growth, with growth rate expected at 10-12 percent. Of which PSF will see a slightly lower growth rate at about 8 percent, output will be about 6.3 million tons.
Polyester filament and staple fiber imports are expected to gradually decline, while exports will continue to substantially increase. Growth rates of domestic demand and export in non-fiber polyester should be higher than fibers, but trade friction risks will be further aggravated.
marketing@alchempro.com
