More than 24% of Chinese chemical fiber producers suffer losses

China's chemical fiber sector saw a drastic slowdown in production and export in the first half of this year, with its economic returns declining substantially, the China Chemical Fibers Association said on Sunday.

The association ascribed the weak performance largely to lower demand resulting from slowing textiles export and to mounting costs caused by price rises for raw materials, coal, power supply and transport services.

Between January and May, 10.04 million tons of chemical fibers were produced nationwide, a growth of 7.4 percent on the same period of last year, and 753,000 tons were exported, up 27.98 percent. The growth rates were 10.49 percentage points and 20.72 percentage points, respectively, lower than the year-earlier level.

Over the five months, the sector garnered 3.72 billion yuan in profits, down 1.36 billion yuan, or 26.77 percent, from the same period of last year.

Approximately 24.13 percent of chemical fibers enterprises nationwide suffered losses, 3.48 percentage points higher than the year-earlier level.

The enterprises in red recorded 2.02 billion yuan in losses, doubling the year-ago level, according to the industry association.

Source:Xinhua