With the sharp decline in cotton prices, viscose filament industry began to "swallow" a few years ago, a substantial expansion of the "bitter fruit."

Yesterday, Hailong announced in Shandong, since May 7th, the Ministry of production and several production lines in Xinjiang have been shut down and overhauled, and the total production capacity of the viscose filament yarn production line is 185 thousand tons, accounting for 68.52% of the total viscose filament production capacity of the company.

Viscose filament is the main business of Shandong Hailong, with a revenue ratio of 80%. Viscose filament yarn The shutdown will have a greater impact on Shandong Hailong, one of the largest viscose staple production enterprises in China. The company said that when the resumption of production will depend on market conditions.

First textile network editor in chief Wang Qian told reporters that from the two quarter of this year, the viscose filament appeared a loss in the whole industry, and its price per ton dropped from 18 thousand yuan / ton to 28 thousand yuan / ton at the beginning of the year. There are two main reasons for the loss of viscose staple industry: first, there are too many new production capacity in the past few years, and the industry surplus is serious, resulting in the current operating rate of about 50%. Two, the cotton price has been greatly reduced, and the pressure on viscose staple yarn has been reduced.

Statistics show that cotton prices rose sharply last year, and the price per ton rose from 16 thousand yuan at the beginning of the year to 33 thousand yuan, the highest since 1995, but it began to fall back to 24 thousand yuan in mid February of this year. Viscose filament is commonly known as " Artificial cotton "The substitution of cotton for cotton prices has led to a 36% drop in viscose staple prices with excess capacity.

"To start is to lose money." Shandong Hailong people said.

Wang further predicted that the downturn in viscose filament industry would not improve in six months.

The main business is viscose short silk listed companies also include Hubei gold ring, Xinxiang. chemical fiber Nanjing chemical fibre and so on. In April of this year, Hubei gold ring changed greatly due to the fluctuation of viscose staple market. The contract for leasing the short fiber production line of Hubei Chemical Fiber Development Co., which began in July 1, 2010, was terminated. Xinxiang chemical fiber launched a private placement project in February this year, but the fund-raising was invested in spandex.

In the same industry affected by the fluctuation of cotton prices, the performance of PET staple is relatively stable. Although the price of polyester staple fiber has also dropped somewhat with cotton, it is basically stable at the beginning of the year, that is, 13 thousand yuan / ton.

Wang Qianjin believes that this is mainly due to the loss of polyester industry in previous years, resulting in fewer new capacity. In addition, the PTA of the upstream polyester fiber is close to 30%, making the gross profit margin of Dacron still at the previous level. However, this situation may change in 2012.