20 May 2008 10:06 [Source: ICIS news]
SHANGHAI (ICIS news)--Many Chinese producers have not seen the optimistic outlook for nonwoven fabric bag materialise despite Beijing's ban on plastic bags coming into effect in less than half a month, market players said on Tuesday.
It is difficult for nonwoven bags to be widely used because of the high cost of nonwoven fibre as most upstream producers lifted the price of polypropylene (PP) fibre on tight supply.
Nonwoven fabric margins have narrowed on the rising cost of PP fibre which is a major feedstock, said nonwoven producers.
“We have to lift nonwoven bag prices to balance our profits,” said one producer. “But as you know, it weighs on sales.”
Many people are not willing to buy high-price nonwoven bags as they were used to use free or cheap plastic bags.
“We prefer to use basket or common bags instead of nonwoven fabric bags to save costs,” said some consumers in the supermarkets.
China will not produce, sell or use plastic bags thinner than 0.025mm from 1 June to prevent pollution and encourage recycling.
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