In first two months; Jan-Feb 2020, according to the data from National Bureau of Statistics, the man-made fiber industry saw a freefall in profits by 74.78 percent, PET fiber down by 132.01 percent and polyamide fiber (Nylon) down by 15.64 percent in profits. The total number of man-made fiber companies running in ‘red’ accounts for 48.7 percent. Profit/Sales ratio is reduced to a poor 0.48 percent in the troubled two months.
The growth and fall in man-made fiber industry considerably depends on consumption market of the midstream and downstream products. China’s retails in January and February fell by 30.9 percent in shop sales for the category of garments, shoes, caps (hats) and knitwear. The brick-and-mortar sales doesn’t seem to have necessarily diverted to the e-commerce retail which also met with a 16.1 percent drop in wearable goods online, thus significant drop rippled nearly all the manmade fiber related supply chain and products.
The individual drop was in Cotton blended yarn 42 percent, chemical fiber made yarn 29.46 percent, cotton blend fabric 52.37 percent, fabrics made of manmade fiber staple 22.96 percent, nonwoven 11.02 percent and in the tire cord fabric 4.14 percent. The export also shrunk for all the textiles and apparel in the country in the first two months that saw a downfall of 20 percent, consequently impacting on the manmade fiber industry.
The national stats show an obvious drop of man-made fiber production by 13.64 percent to turn out 7.2723 million tons in January and February. The breakup sector wise is as in viscose staple for 448,300 tons, a drop by 33.71 percent, PET fiber for 5.5889 million tons, a decrease by 11.92 percent, polyamide fiber (Nylon) for 508,600 tons, a fallout by 27.11 percent, and polyurethane fiber (Spandex) for 122,300 tons, up by 4.18 percent as a result of rising market demand for coarse-denier Spandex for the ear-loop of face masks.
The import and export of manmade fibers both faced slide down with exception of few product lines. As the data from Chinese Customs shows, the first two months of the year witnessed 114.500 tons in imports, down by 17.2 percent which reflected sectorwise drop in PET staple for 25,400 tons and PET filament for 15,000 tons, both fell respectively by 8.59 percent and 6.85 percent. To be more specific, polyamide filament registered an import of only 9600 tons, a freefall by 34.27 percent, and viscose staple by 27.46 percent for 25,700 tons.
On the export side, China shipped out 638,800 tons of manmade fibers in January and February that saw a descent by 12.33 percent, more specifically, PET staple for 109,900 tons, a 24.11 percent sliding down, and PET filament for 366,900 tons, 14.06 percent less than the previous growth in the same period last year. The show down picture is also seen in the export of polyamide filament for 39,800 tons with 4.41 percent drop, but in the viscose filament and polyurethane fiber, both enjoyed growth up by 20.36 percent and 9.69 percent, respectively.
Investment in fixed assets
The investment plummeted by 35.7 percent in the first two months of this year, 31.9 percentage points lower than the corresponding months last year because some big projects under construction were called to a halt in case of coronavirus spreading.
Economic Profit and Loss
According to the data from National Bureau of Statistics, the man-made fiber industry slided down with a freefall by 74.78 percent in profits of 397 million Yuan, break up for important sectors like PET fiber down by 132.01 percent and polyamide fiber (Nylon) down by 15.64 percent in profits on balance sheet reports. The number of companies running in red accounts for 48.7 percent of the total man-made fiber companies eligible in the national statistics system with the loss of money up by 39.49 percent.
With the sharp fall in profits, the profit/sales rate is reduced to a poor 0.48 percent as the sales income itself ran into a predicament with a significant fall by 28.39 percent to finish with 83.584 billion Yuan in the troubled two months.
A glimpse of Manmade Fiber Production in 2019 (Jan.-Dec.)
|Unit: 10,000 ton|
|Products||Jan. – Dec.||Growth Change|
|Manmade Fiber in Total||5827||7.8%|
|--breakdowns as in|
|Source: China Chemical Fibers Association|
Contributed by Mr. ZHAO Hong
He is working for CHINA TEXTILE magazine as Editor-in-Chief in addition to being involved in a plethora of activities for the textile industry. He has worked for the Engineering Institute of Ministry of Textile Industry, and for China National Textile Council and continues to serve the industry in the capacity of Deputy Director of China Textile International Exchange Centre, V. President of China Knitting Industry Association, V. President of China Textile Magazine and its Editor-in-Chief for the English Version, Deputy Director of News Centre of China National Textile and Apparel Council (CNTAC), Deputy Director of International Trade Office, CNTAC, Deputy Director of China Textile Economic Research Centre. He was also elected once ACT Chair of Private Sector Consulting Committee of International Textile and Clothing Bureau (ITCB)