China’s MMF Production Decreases 1% in H1

According to the China Chemical Fibers Association, the nation’s production of manmade fibers during January-June 2020 decreased by 1.0% compared to the year before to 28.11 million tons.

It can be said that production recovered from the production decreases up to March, which were caused by the spread of the coronavirus. However, the outlook is uncertain because the coronavirus pandemic outside China has resulted in demand shortages.

First-half polyester production remained about the same at 22.37 million tons. Nylon production rose 1.3% to 2 million tons, that of acetate filament grew 4.8% to 232,400 tons, and spandex was up 0.3% to 387,600 tons.

Production decreased for rayon staple fiber (down 32.7% to 1.37 million tons, rayon filament (down 0.8% to 90,300 tons) and acrylics (down 23.0% to 276,200 tons.

First-half MMF exports fell 19.2% year-on-year to 1.94 million tons.

The January-June 2020 sales of MMF enterprises larger than a certain scale decreased by 18.4% to 349.4 billion yuan. Their total profits (pretax profits) dropped 41.9% to 7.2 billion yuan. The gross profits of major varieties excluding spandex and polypropylene fell below year-before levels. 42.8% of the enterprises were in the red.