Chemical fiber industry in the 4-quarter loss of the entire industry has been plunged into the plight of

The first ten months of data show that the textile industry profits for the first time a decade of negative growth, and chemical fiber industry in the 4-quarter loss of the entire industry has been plunged into difficulties, which the chemical fiber industry in September to November actual net loss of 1.243 billion yuan, synthetic fiber loss of 12 billion, a loss of 160 million yuan viscose fiber. And in December there was no improvement in industry conditions, the high cost of raw materials inventory is still, losses will continue to increase, which determine the expected full-year 2008 profits of the textile industry will be the same as last year or even negative growth, chemical fiber profits will drop more than 80%

A decrease in demand in the downstream circumstances, since the second half of 2008, chemical fiber industry chain operating rate has been relatively low, access to 2009, together with the Chinese New Year holiday factors, industry-wide operating rate to decline further, limiting efforts to achieve unprecedented intensity. PX operating rate less than 80%, PTA, only 60 percent more than polyester filament fiber 60% -80%, while PET is less than 50%. Acrylic fiber industry average operating rate at around 55-57%. Spandex industry operating rate less than 50%.

Although the Lunar New Year holidays may be extended, the upstream and downstream enterprises to start may be delayed, but once the post after the resumption of work, we should have a greater purchasing prices of raw materials, chemical fiber in terms of time on that there might be stimulated. However, the first quarter to complete the possibility of almost no improvement, but it should be the lowest operating rate, the industry situation difficult period, followed with the use of low-cost raw materials, textile resumption of work increased, the industry will gradually shake off the most difficult predicament.

Although the end of the petrochemical industry chain industry, chemical fiber run is still subject to fluctuations in oil prices caused raw material prices, but because of excessive expansion of production capacity in recent years, triggered by a more prominent contradiction of supply exceeding demand, demand has exceeded the cost of running to become the trend of the affected trades an important factor. Thus, while oil prices, PX, Benzene and other raw materials prices rebounded bottomed can also consider that the whole industry’s leading indicator warmer, but it is more crucial is the downstream textile demand gradually increase, weaving enterprises started to improve the recovery rate.

Although, chemical fiber decreased performance of listed companies, especially in the fourth quarter from raw materials to the sharp fall in prices of chemical fiber products, high-priced stock plummeted to the enterprise a huge loss of profits, such as the Australian foreign technology stocks plummeted in recent days notice because the ultra-expected 2008 full – loss in performance is expected to 29000-30000 million, far more than previously projected in the three quarterly loss 17500-18000 million.

Moreover, such ultra-expected drop of losses, may be in more chemical companies, but the industry as soon as warmer, we still need to pay attention to industry leading companies such as Yantai Spandex, Shandong Hailong, Haili was, Huafeng Spandex, etc. .