The polyester production capacity that has been shut down or reduced is 4.536 million tons

Thread Content

Recently, due to low profits in the polyester sector and rising inventory levels, polyester factories have faced pressure, and some companies have begun to reduce production one after another. It is understood that China’s major polyester manufacturers, including Tongkun, Xinfengming, Hengyi, and Tiansheng, all plan to reduce production by around 20%, resulting in a total reduction of approximately 4 million tons; the time when production will resume is yet to be determined. Meanwhile, other polyester manufacturers have also begun to announce plans to reduce production; currently, the amount of production that will be cut or halted amounts to 4.536 million tons. It is possible that other domestic companies with relatively high inventory levels may also decide to cut production in the future. As a result, production in China’s polyester industry will decline significantly; it is estimated that after the reduction, industry production will be at around 1.09–1.1 million tons, with the capacity utilization rate below 86%. Once smaller and medium-sized enterprises join in, the capacity utilization rate could drop to around 83%. Recent list of polyester production cuts