high operating rate in the first quarter and rapid decline in the second quarter

In the first quarter of 2022, the operating rate of chemical fiber industry was high and the production showed strong upward momentum. The production curtailment during the Spring Festival holiday was weaker than the same period of past years as many had turnaround or cut production in Q4 2021. The operating rate of chemical fiber industry was high in Jan-Feb, 2022, and rose to high level in Mar after plants successively resumed operation after the Spring Festival holiday.

However, since the second half of Mar, the logistics were slow when the spread of pandemic worsened in some regions of China and lockdown started.  Downstream wholesale and retail sales were under pressure. With stifled logistics, the operating rate of downstream plants gradually descended