China VSF market: how to get rid of plight?
2015-05-27
Ding Jinqi, information manager of CCFGroup, delivers his report of
Ice breaking journey of VSF
Ding firstly introduced the freezing situation of VSF and then explained why does VSF fall to such situation and finally analyzed the ice-break journey of VSF. In the first part, Ding illustrated the capacities and operating rates of chemical fiber industries to emphasize that VSF capacity has been effectively used and digested. The freezing situation was caused by long-term losses resulted from an irresistible external trend, lower internal competitiveness and deep impact from cotton. Under the background of periodical supportive policy, 4-year continuous low growth rate, improving downstream demand and underestimated VSF value, Ding gave three suggestions: 1. wait. Wait for favorable policy and wait for demand recovery. 2. Stall. Ensure capital turnover. Reduce Inventory in production and intermediate links. Sell projects with unfavorable profit. Introduction of strategic investors. 3. Change. Change future developing pattern.