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Capacity Overcoming &Nbsp; Viscose Filament Supply And Demand Tightening.

2011/5/10 15:50:00 61

Production Viscose Filament Supply And Demand Tightening

Recently, the export of viscose filament has greatly improved.

We believe that this is the world's

stock

Capacity is fully eliminated.

In the background of the continuous decline of raw material pulp prices of viscose filament, we expect that the profitability of the listed companies will continue to improve.

The raw material of viscose filament is pulp, downstream used in silk, cotton textile, knitting, weaving and weaving, and thread making.

Pile making

Industry.

Our research shows that viscose filament is made from cotton lint as raw material, cotton pulp is prepared by multi-channel process, and then viscose solution is obtained by chemical treatment. Viscose solution is obtained through spinning to obtain viscose filament.

Viscose filament yarn can be woven into beautiful silk, spring spinning and silk quilt, and it can also be interwoven with cotton yarn, silk and synthetic fiber.

Down yarn

Soft satin and fragrance crepe.

In the context of a deep fall in raw material prices, the price difference between viscose filament and lint has increased by 4000 yuan / ton in the first quarter. We believe that the logic behind the strong position of the filament is that the global stock capacity has been fully eliminated.

In recent years, the global viscose filament stock capacity has been accelerated. (before 2007, the capacity of overseas closed production was around 40 thousand tons. In 2010, the capacity of the viscose filament was reduced by 10 thousand tons, and domestic output was closed by 20 thousand tons).

At present, the global capacity distribution is 200 thousand tons in China and 45 thousand tons in India. The global capacity is about 360 thousand tons, and the global supply and demand contradiction is more intense.

In April 2010, China's Ministry of industry and Commerce banned the construction of viscose filament project in the "admittance conditions of viscose fiber industry" and implemented it since June 2010. Since then, the industry's new entry has been completely sealed off.

With the shutdown of overseas production capacity and the recovery of the global economic situation, China's viscose filament exports increased significantly in 2009, and exports have returned to pre crisis levels.

We believe that the price of viscose filament will continue to be strong in the whole industry chain under the backdrop of a warmer export volume.

Viscose staple fiber / viscose filament production is more than 8:1, so viscose staple fiber demand determines pulp price. At present, the profit and loss balance of viscose staple fiber industry determines that pulp price is high.

We expect pulp prices to rise and fall under viscose staple fiber, and the profitability of viscose filament companies will continue to improve.