According to the latest edition of the PCI Fibres Red Book, published by a specialist consultancy company in fibres and textiles markets, there are now indications of a shake-out as a result of demand growth not being as strong as expected by the polyester industry in China and elsewhere in Asia.

This is despite the fact that the polyester fibres capacity is still increasing in China. The report, however, outlines that a list of the world’s top polyester fibre producers still includes 15 Chinese firms in the top 20. 

Reducing capacity

Among the top companies, there are three filament yarn producers, Kings Industry Group, Jiabao and ShiChuan, based in Zhejiang, which have reduced their capacity this year.

Shaoxing Yuandong, of Zhejiang, specialising in textile filament and staple, has also stopped expanding.  Expansion also appears to have come to a halt in Jiangsu province, at the Jiangyin Huahong staple operations and at the Taicang Senjo, Yixing Huaya and Wujiang Yingxiang textile filament operations.

Reports from the market suggest there are a number of other companies undertaking reductions in capacity, mostly without any announcement to the market. 

Positive trends

Still expanding, however, is Tongkun, China’s top producer. Similarly, there are some good developments for Reliance Industries in India and Indorama Ventures, which is now spread across South East Asia, India, Europe and North America, partly with new capacity and partly through acquisition. 

Toray Industries has also expanded through acquisition, with the purchase of Woongjin in Korea, in consequence returning to the top 20, as listed by PCI Fibres.

www.pcifibres.com