Manmade fiber industry hit hard with profits fallout by 75%

Manmade fiber industry stands way upfront in the supply chain and its rise and fall considerably depends on the midstream and downstream production that is subject to the consumption market after all. Chinas retails in January and February fell by 30.9% in shop sales for the category of garment， shoes， caps （hats） and knitwear. The brick-andmortar sales weakness did not necessarily in turn divert the trade flow to the e-commerce retail which also met a 16.1% drop in wearable goods online， this shock ripples nearly all the manmade fiber related products like cotton blended yarn， chemical fiber yarn， cotton blend fabric， the fabric made of manmade fiber staple， nonwoven， tire cord fabric， all encountered fallouts respectively by 42%， 29.46%， 52.37%， 22.96%， 11.02% and 4.14%. The export shrinkage for all the textiles and apparel in the country in the beginning two months that saw 20% down also has much impact on the manmade fiber industry.

Production：

The national stats show an obvious drop of manmade fiber production by 13.64% to turn out 7.2723 million tons in January and February with the breakdowns in viscous staple for 448，300 tons， a drop by 33.71%， PET fiber for 5.5889 million tons， a decrease by 11.92%， polyamide fiber（Nylon） for 508，600 tons， a fallout by 27.11%， and polyurethane fiber（Spandex） for 122，300 tons， up by 4.18% as a result of rising market demand for coarse-denier Spandex for the ear loop of face masks.

Economic Profit and Loss

According to the data from National Bureau of Statistics， the manmade fiber industry slided down with a freefall by 74.78% in profits of 397 million yuan， its important sectors like PET fiber down by 132.01% and polyamide fiber（Nylon） down by 15.64% in profits on balance sheet report. The number of companies running in red accounts for 48.7% of the total manmade fiber companies eligible in the national statistics system with the loss of money up by 39.49%.

With the sharp fall of profits， the profit/sales rate is reduced to a poor 0.48% as the sales income itself ran into a predicament with a significant fall by 28.39% to finish with 83.584 billion yuan in the troubled two months.