26 March 2013 04:20 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Sinopec Yizheng Chemical Fibre posted on Tuesday a net loss of yuan (CNY) 361m ($58m) in 2012, swung from a net profit of CNY839m in 2011 because of squeezed margins amid the sluggish polyester market.
The turnover was CNY17bn for the year 2012, compared with CNY20bn in 2011, the producer said in a statement to the Shanghai Stock Exchange.
The company’s margins shrank sharply because of slumped domestic polyester prices, weighed by falling exports growth of Chinese textile and garment due to poor overseas demand amid weak global economic recovery, the statement said.
Furthermore, the expanded polyester capacity in the domestic market resulted in an oversupply situation, it added.
Total domestic polyester capacity reached 38.3m tonnes/year in 2012 with the new capacity of 5.5m tonnes/year, but demand continued to slow, it said.
Sinopec Yizheng Chemical Fibre produced 2.20m tonnes of polyester products in 2012, up by 0.8% year on year, while its sales volume of polyester products fell by 1.3% to 1.75m tonnes.
($1 = CNY6.21)
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