Excessive excess capacity in the chemical fiber industry brewing "run away"

Although a number of chemical fiber listed companies have issued pre-income announcements, market participants believe that overcapacity and insufficient downstream orders will affect the recovery of chemical fiber products for a longer period of time, which will affect the development of the industry. In response, the reporter learned from the China Chemical Fiber Industry Association on the 13th that the Chemical Fiber Association is organizing related companies to speed up research and formulate a “going out” road map.
It is understood that the Chemical Fiber Association is organizing related companies to speed up research and formulate plans to build a chemical fiber textile city together with Russia. Russia hopes to use Russia as an important strategic bastion for the “going out” of China's chemical fiber industry, and thus realizes the “going out” of the entire chemical fiber industry chain.
For a long time, the development of China's chemical fiber industry is under the control of "two ends out" - including spandex and other major raw materials almost all rely on imports, foreign dependence of up to 47%; and China's chemical fiber exports have accounted for 40% of global fiber trade volume.
Especially in recent years, labor costs in the southeastern coastal areas have continued to rise. At the same time, with the State Council’s emphasis on energy conservation and emissions reduction, as one of the high-energy-consuming industries, related companies are suffering from power shortages.
Chang Yingzhi, a research fellow in the chemical industry of China Investment Advisors, pointed out that “As a result of these factors, the production costs of chemical fiber products have increased, and most companies are basically in a state of low profit, and development has been greatly limited. Most companies have the internal demand for industrial transfer. ”
In this regard, the Chemical Fiber Association believes that in order to realize the dream of transforming from a large chemical fiber country to a powerful chemical fiber country, it is no longer subject to control, and “going out” is the only way.
According to long-term research, the association has made clear that Russia is the first stop for “going out”. Russia's oil resources are abundant and it can provide sufficient raw material supply. As textile products for end products, the Russian market also has enormous potential to be tapped.
"The chemical fiber industry's going out' is not a simple product 'going out', but capital, technology, production capacity, and engineering power are all going out of the country."
Association officials said that after this round of structural adjustments in the post-crisis era, the chemical fiber industry should use capital to “go global” as a link to drive the export of technology and products. The ultimate goal is to make China’s chemical fiber industry a position in the global chemical fiber industry and China’s Comprehensive national power matches.
In addition, the person also said that high growth in the chemical fiber industry in the first half of the year is expected to continue. He believes that in accordance with the cyclical law of the development of the chemical fiber industry, after the adjustment of the past two years, this year's chemical fiber industry should be maintained in the rising cycle; at the same time, with the recovery of the world economy and the Chinese economy, chemical fiber industry signs of recovery It will also become more apparent. "In 2010, China's chemical fiber industry will still be in a rising period. There is no need for people to hold a pessimistic attitude toward this year."

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