AFPM ’13: Synthetic fibre demand grows amid China overcapacity

25 March 2013 14:28  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--Global demand for synthetic fibres is growing at a steady pace, but overexpansion in the key China market could depress the markets along the textile chain, an industry source said late on Sunday.

“Polyester is steadily growing but incredibly, there is too much capacity – ignoring the actual demand growth,” said the source on the sidelines of the International Petrochemical Conference (IPC).

Nylon 6 [global] consumption growth is roughly 3% and polyester [demand] is higher than that. In China, [the demand is] much higher,” the source said.

“Fibre demand is still growing rapidly in China due to increasing population, [and] also in south east Asia. It’s a good sign for synthetic fibre raw material business,” the source said.

But at the current pace of capacity expansion in China – particularly in the purified terephthalic acid (PTA) and caprolactam (capro) – appears to be disregarding the weak macroeconomic environment.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday.

By: Pearl Bantillo
+65 6780 4359

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