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Indonesia:Quota expiration to see rise in synthetic fiber demand |
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2004-9-17
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Close on heals of expiration of textile quotas, chemical fiber producers in Asia see rising world demand for their products, early next year.
S P Lohia, Chairman, Asian Chemical Fiber Industries Federation (ACFIF) said on Wednesday that world demand for chemical fiber was projected to grow by around 8 percent per year during the next five years as a quota-free regime in textile trade would facilitate rapid growth of the industry, particularly in the region, which in turn would increase demand for chemical fiber, a raw material used in textile production.
Chemical fiber consumption in the world had increased from 21 million tons a year more than two decades ago to around 33 million tons a year over the last couple of years.
The quota system had left the world''s textile industry stagnant, which eventually discouraged new investment, said Lohia.
"An expanding textile market means higher demand for raw materials, including synthetic fibers," said Lohia, who took over the chair of ACFIF after the federation held its 5th conference in Nusa Dua, Bali, last week.
The conference, hosted by the Indonesian Synthetic Fiber Makers Association (Apsyfi), was attended by members from China, Taiwan, India, Indonesia, Japan, South Korea, Malaysia, Pakistan and Thailand.
ACFIF members account for around 75 percent of the world production, with Indonesia contributing around 2.5 percent, said Lohia, who is also an Apsyfi''s board member.
Indonesia produced up to 1.2 million tons of synthetic fiber every year, of which about 200,000 tons worth US$300 million was exported, with the rest being used to fulfill domestic demand.
It has 18 chemical fiber producers employing around 40,000 people within the country.
According to Lohia, chemical fiber makers would evaluate next year''s textile market to see who would eventually become the major players on the global market.
Fiber makers would naturally approach the dominant market players, he said.
On the current high oil prices affecting the chemical fiber industry raising the production costs, Lohia said, "We cannot pass on all the increased costs to our customers. Instead, we are having to squeeze margins." |
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