Polyester industry chain is fluctuating now
What can enterprises do to avoid risks under trade barrier?
Jun 05, 2019 ｜ by CT
Recently, the United States suddenly imposed a tariff of USD 200 billion on Chinese products imported to the United States, and China quickly took countermeasures.
In the field of chemical fibers, chemical filaments and fabrics, chemical staple fibers and fabrics are subject to tariffs. This has affected the polyester industry chain to a certain extent, causing the price of crude oil and related polyester commodities to fluctuate to a certain extent.
As the downstream of the polyester industry chain, polyester filament has not been spared. Since mid-April, the price of polyester filament has been falling by nearly 1,000 yuan due to poor production and sales and excessive inventory.
By early May, polyester factories had launched price-cutting promotions, cleared their stockpiles properly, and some factories began to stop production and repair, resulting in a considerable decline in production capacity.
Although the recession of terminal weaving market is the main reason for the overall downturn of polyester, the industry insiders said that the recent sudden increase in trade friction between China and the United States is also the direct trigger for the fluctuation of the polyester industry chain.
At the beginning of this year, Duan Xiaoping, vice president of China National Textile and Apparel Council and president of China Chemical Fiber Association, talked about how to deal with Sino-U.S. trade frictions in an interview with reporters. He said that although the direct impact of Sino-U.S. trade friction on the chemical fiber industry is limited, it should not be ignored. On the one hand, enterprises should strive to improve their competitiveness. On the other hand, we should actively seek new alternative markets.
As a “barometer” of foreign trade, the new features of Canton Fair show that China’s textile exports are moving from “winning by price” to “winning by quality”.
In addition, enterprises should strengthen trade cooperation with ASEAN, EU and central and South American countries, especially the countries along the “Belt and Road”, reduce their dependence on the U.S. market, and actively seek new alternative markets and enhance their ability to resist risks. Powerful enterprises can consider the layout of overseas markets to avoid trade barriers.
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