Chemical fiber industry operation

The prices drifted lower with great volatility. In the first half of 2022, prices of most products hovered high, continuing the strength and getting supported by strong feedstock. In the latter half, however, with Fed’s hiking interest rate sharply, commodity market was bearish. Demand was sluggish amid economic risk, dragging down chemical fiber markets.

It can be seen from the figure that both chemical fiber and cotton textile product prices, from raw material, fiber to yarn, were high in the beginning of 2022, increasing from the same period of last year. As of early Nov, however, except for crude oil, prices of other products were lower compared to the level in the same period of last year.

The markets were bolstered by high cost earlier, but then, prices declined amid weak demand. It would be tougher for chemical fiber industry with the increasing price volatility.

The inventory was in rising cycle. Chemical fiber industry was under selling pressure in 2022, leading to continuous rise in product inventory. Compared to the level in the beginning of the year, the inventory has rebounded obviously.