Latest News Latest News Polyester Fiber Imports Dominated by China Products
Polyester Fiber Imports Dominated by China Products
| 25 January 2012
Imports of polyester fiber for textile raw materials Indonesia in 2012 estimated the figure is still high. Synthetic Fiber Producers Association of Indonesia (APSyFI) recorded imports of polyester fiber in 2011 reached 180,000 tons, an increase of up to 80% from a year earlier. While imports of polyester filament yarn also rose 24%, or 52,000 tons of the total consumption of 499 000 tonnes.
Secretary General of the Association of Entrepreneurs APSyFI Redma Gita reveals, most of the polyester fiber imports from China. Redma also said there were some indications of dumping on imports of polyester fiber from China. Indication that, he explains, can be seen from the price of fiber imported from China is lower than the price of domestically produced fiber.
In fact, he added, the cost of production in Indonesia and China really is not much different, the only difference being the cost of raw materials. Industry in China has to import some raw materials from other countries, so, according to him, their cost of production will be more expensive because there are additional costs for customs duties and transportation. "If they sell to Indonesia for a cheaper price plus costs after it's weird. Surely the price dumping, "said Redma.
Consumption Projections
Redma further explained that this year's total fiber consumption is estimated 1.33 million tonnes and consumption reached 593 000 tons of polyester fiber. "Consumption per capita is expected next year could reach 6.5% so that total consumption can be increased eight percent," he said.
While the production of polyester fiber and yarn this year has not changed much each of 535 000 tonnes and 670,000 tonnes. Gita Redma Wirawasta also revealed, in fact there are three companies who are doing the polyester fiber capacity additions are PT Indorama Synthetics Tbk (INDR), PT Asia Pacific Fibers Corporation (POLY) and PT Quality Ivory. "But this year the new addition of the Indorama which began operations, it was at the end of the year," said Redma.
Synthetic fiber production capacity nationwide in 2011 reached 535 000 tons per year. With the addition of Indorama at the end of the year, their installed capacity will increase by 5%. While in 2013, after the addition of capacity and quality POLY Ivory finish, national capacity will increase 12%.
In this year, Rayon fiber production capacity will also be slightly increased with the expansion carried out by PT South Pacific Viscose (SPV). But the addition of new capacity of the plant also will operate effectively at the end of 2012.
Throughout 2011, the production of both cotton fibers, synthetic and rayon reach 931 000 tonnes. Of that amount, a total of 359 000 tons were exported and the remaining 572 000 tonnes is used domestically. Meanwhile, demand in the country reached 1.33 million tons. Thus, the textile industry still has to import about 763 000 tonnes of fiber.
But, Chairman of the Indonesian Textile Association (API) Ade Sudrajat rate, a phenomenon that is imported is ongoing dynamics. Because imports are carried out can also increase the competitiveness of domestic products. "Imports of raw materials most of which will be re-exported in the form of the garment," he said.
However, Ade admitted to the fiber in the domestic production is limited, then the import would do well to continue to grow each year. It happened because of fiber each year continues to increase.
Notes from APSyFI, fiber industrial production tends to stagnate in the past year. The volume of imports of cotton and rayon little down about 2%. While the volume of imports rose 99% polyester. The average unit price of polyester fiber exports have gone up from U.S. $ 1.29 per kg to U.S. $ 1.79 per kg. Meanwhile, imports of polyester unit price rose from U.S. $ 1.44 per kg to U.S. $ 2.05 per kg. Until earlier this year the price has not shown signs of going down.
Source : Neraca