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Development and Reform Commission: Excessive growth in investment will affect the smooth operation of the chemical fiber industry
According to the latest analysis report from the National Development and Reform Commission, the chemical fiber industry is entering a new phase of growth after two years of adjustment. A renewed wave of investment, led by the polyester sector, is gaining momentum. In 2006, the industry completed fixed asset investments totaling 21.4 billion yuan, marking a year-on-year increase of 22.9%. Within that, the polyester industry alone invested 6.6 billion yuan, showing an impressive 88% rise.
Since 2007, the rush to follow up on new investment opportunities has become more pronounced, especially in the spandex and viscose sectors, which saw sharp price increases. This has driven significant expansion in production capacity. According to preliminary data, spandex production capacity rose by about 5,000 tons at Huafeng Spandex and 7,000 tons at Foshan Invista in 2006. However, the following year witnessed a surge, with new capacities exceeding 20,000 tons. Similarly, the viscose industry is also grappling with increased supply due to new projects coming online.
In recent months, the nylon and acrylic fiber industries have also shown strong investment growth. Data from January to May this year reveals that actual investments in the nylon sector reached 910 million yuan, up 190.3% compared to the same period last year. The growth rate accelerated by 209.3 percentage points. Meanwhile, the acrylic fiber industry saw actual investments reach 120 million yuan, reflecting a 160.7% increase, with a 249.9 percentage point acceleration.
Given that chemical fiber projects typically have short construction periods, the rapid expansion of production capacity fueled by high profits is significantly impacting the balance between supply and demand. If investment continues to grow at such a fast pace, it could lead to fierce competition and potentially disrupt the stability of the entire chemical fiber industry.