Shi Jinglv most of the chemical fiber enterprises have been brought down to between 1 to 3

This year, the upper reaches of unstable prices of raw materials, coupled with the lower reaches of people affected by cotton textile major environmental impact of recession, the demand can hardly be improved, resulting in continued market viscose Yindie six months. Staple has fallen by 27% in the first half, the filament in the first half of the decline of 6%. Spandex has also suffered the same fate, the closure of many small and medium enterprises, and large manufacturers have spandex expansion, and hopes that expanding the scale and lower production costs, increase corporate profits.

October 21, the Ministry of Finance, State Administration of Taxation jointly notice: to raise some of the goods the export tax rebate rate. Range from the point of view, this adjustment will benefit the direct export of chapter 54 and chapter 55 of the total length of chemical fiber products, and most of the downstream chemical fiber textiles, chemical fiber industry in general will benefit. Sub-species, the adjustment of tax rebate rate of viscose fiber directly up 9 percentage points, from 5% to 14% in the fourth quarter to improve the operation of the viscose industry and improve industry profit margins have a significant positive impact.

The export tax rebate adjustment is a response to the positive macroeconomic data will further ease the pressure on the chemical fiber industry, to increase confidence in the development of the industry in the near future to enhance the overall industry profit margins, based on export-oriented enterprises of great good. However, the long-term impact, we continue to believe that the chemical fiber industry is mainly due to economic decline in Europe and the United States the economic downturn caused by sluggish demand for the lower reaches of the yuan revaluation and speed up the prices of production factors led to the increase in the cost, as well as the same rapid expansion of production capacity, product differentiation Low rates caused by excessive competition, and so on. Exports in the continued deterioration of the environment, companies are likely to reduce export prices in exchange for market space, the state-to-business subsidies into the consumer market for the subsidies. But oil prices and raw material prices decline quickly, chemical fiber enterprises for the time being will bid farewell to the era of high costs. At the same time, because of lower raw material costs, especially in raw materials prices fell more than chemical fiber product prices decline, in line with inflation at different stages of change in the law of profit, chemical fiber enterprises is expected to be to restore profitability.

In the United States and other major importing countries against the backdrop of economic recession, we maintain the chemical fiber industry “neutral” investment rating. At present, exposure to external markets and the domestic economy is expected to downlink, Shi Jinglv most of the chemical fiber enterprises have been brought down to between 1 to 3, the value of the proposed investors may be concerned about the quality of the companies in the industry.