Chemical industry products and raw supplies continued widening spreads, PTA and EG costs will remain shocks, and polyester, spandex, nylon and viscose prices rapidly rose. Downstream from a chemical point of view, the textile business to boost production and foreign demand is determined. For that reason, the chemical fiber market, the existing boom of high profits, but the ability to maintain this trend, depending on the downstream and the industry’s own level of inventory and capacity utilization.

From the perspective of inventory, PTA plant operating rates since late last year continued to preserve above 90%, social stock high, and fairly high inventory of polyester. But we believe that at this stage downstream demand against the background of rapid recovery, slightly greater inventory is not the major concern, the key is the upstream and downstream business chain, the operating rate of business alter. First look at the key chemical fiber raw material PTA, considering that the second half of 2009, even though the factory operating rate has remained high at 90% or much more, but nonetheless showing the existing PTA tight balance of supply and demand situation. According to China Chemical Fiber Association statistics, in 2009 production capacity of polyester added 1.3 to 26.22 million tons. Starts at the existing rate of 76.five% calculated polyester, PTA at 1.5 million tons on demand. The finish of 2009, PTA production capacity 14.96 million tons, an average of 92% if early March operating rate calculation, PTA monthly when the 1.15 million tons.

Import side, as the Ministry of Commerce anti-dumping investigation, the standard Thai items can not enter the Chinese industry, although Korean items spread in the case of no appropriate amounts also imports the drop, chemical fiber business began with the follow-up rates have elevated, from the upstream price pressure is still there. The reason we believe that follow-up chemical business operating rates will enhance, not only since polyester business, the present operating rate of 76.5% is not very high, and since chemical merchandise are a lot more substantial current cost increases, profits will be thickened stimulate manufacturers to improve production. For the downstream chemical fiber textiles, the weaving operation rate to rise to around 70% of recent textile “labor shortage” eased, textile production and stocking active in the restoration, the China Textile City daily trading volume has increased to 250 10,000 meters above. Then, the recovery in the industry chain from the bottom up method, due to the fact the textile company is reasonably weak bargaining power, so chemical merchandise prices in the industry chain, the most obvious.

The above, we judge these industries are chemical&gt PTA&gt Textile. For the terminal for the apparel business, in February 2010 the domestic apparel exports 8.071 billion U.S. dollars, up 96.56 percent year on year respectively. Improve compared to January of the year, representing a marked boost in a single month. The major reason is the relationship between the base last year (the high base final year in January, February is extremely low base). Statistics show that in February prior to total domestic textile and apparel exports grew 29.02%. From the fourth quarter of 2009, there are some signs of recovery in exports, export prices and order structure of the lowest point in early 2009 when the relative apparent recovery, but from the 2007/2008 peak boom years of the business are still gaps. Significant markets in Europe and America from the recent consumption information to see the clothing is nonetheless in the bottom of the slow recovery, not growth. Round of monetary crisis on the foreign consumer spending, consumer expectations and the impact of consumer habits resulting expected to continue longer. On the other hand, domestic sales to sustain good growth. National Bureau of Statistics data show that in February 2010, total retail sales of social consumer goods grew 17.9%, although total retail sales of clothing and shoes of consumer goods grew 23.3%, five.four percentage points far more than the social typical. Despite the fact that this one has some holiday discount promotion elements, but for several years clothing retail sales growth significantly exceeded the average growth rate of the condition of society, reflecting the continued strong growth of domestic industry. From exports and domestic sales data, the apparel industry’s recovery is determined. Even so, due to its upstream chemical fiber industry, adjustments in income than the expense of much more flexible, so the recovery of the terminal is the chemical industry to bring more prosperity.