Fibre Producers Face a New Threat…Inflation

During an 18-month period beginning the middle of 2014 through early 2016 crude oil prices fell from $100 to $30 bbl. The same period witnessed a significant investment in fibre and intermediate capacities, particularly in China. Increased capacity occurred when final demand for fibre products waned in nearly all markets.

At the same time global trade was facilitated by most governments and logistical costs declined increasing competition for regional fibre producers from producers outside the region whom were suffering the impact of overcapacity. Labour was readily available and its costs were generally steady. All these factors created a deflationary environment for costs and prices throughout the period for fibre producers.

In the last two years it seems all these previous market forces have reversed and fibre producers are facing a return to inflation. How will this new reality impact fibre markets? What markets will be winners in the short term?

Click here to receive the full article *

Track Monthly Markets & Long Term Trends in Tecnon OrbiChem’s Relaunched Fibres & Intermediates Report and our Latest World Synthetic Fibres Database.

Get 15 months subscription to both for £4,600

Collier Sept 15_V2
Darrel Collier
Business Manager – Synthetic Fibres & Intermediates
Phone: +44 207 924 3955
darrel.collier@orbichem.com

 

(*  By requesting the full article, you are giving Tecnon OrbiChem consent to send you market news, such as this article, and information about our services and events relevant to your markets. Tecnon OrbiChem will use your contact information for the sole purpose of keeping you updated on our news and does not share contact information with any third parties. All our marketing emails have an option to unsubscribe, which you are welcome to do so at any time. )

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s