PIY enterprises showed big determination to curb price from falling

PIY enterprises showed big determination to curb price from falling while it will be hard to break the predicament. If downstream buyers commonly accept the new price mode, PIY market will embrace its highlight. PIY market is oversupplied with excessive capacity. High profit will be hard to be practical under such status. The operating rate of plants will gradually ascend with improving profit. Some old units which have been offline for long will return to the market again, which will further drag down the profit. Only when the excessive capacity changes will the profit of PIY surge. There are two ways to alter the excessive status: the first is to reduce supply and eliminate some capacity. The second is to expand demand and explore new application fields. In recent years, the demand for PIY gradually expands while it fails to chase up the increase in supply, and it is difficult to develop new application field. Actually, some small PIY units have been eliminated from the market, far lower than the expanding size. With price competition and ongoing losses, some units may be eliminated later