Although China's polyester industry has achieved rapid development in recent years; it has experienced difficulties with a slow supply of upstream raw materials and a difficult operational environment for downstream textile production. An Analyst said on November 22.
Of the 20 million tons of global production capacity of polyester added in the past ten years, about 40 per cent has been in China. China's production capacity of polyester has reached 15 million tons a year, while new production facilities with a combined production capacity of 10 million tons are under construction. The country's total consumption is estimated to reach 14.3 million tons this year, as China becomes a major world polyester producer and consumer. For a long time, China's polyester industry has maintained a higher speed of growth than that of terephthalic acid and ethylene glycol, which are the key raw materials for polyester production.
The shortage of the raw materials is growing in China year by year. Meanwhile, rocketing oil prices have increased the production cost of polyester. But its downstream sector
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| of textile production is facing more difficulties in operation, such as shrinking exports and an increasing number of trade disputes. Given these circumstances, the polyester sector finds it difficult to raise prices of its products because of price rises of raw materials, while on the other hand it cannot transfer the cost pressure to downstream sectors.
Internationally, more than 30% of polyester is supplied for bottle production, as against only 10% in China. Most China-made polyester is provided for textile production.
However, when the production of textile industry slows down, the polyester industry is under pressure to find new ways and areas of application. At the same time, it should make efforts to expand international market. Currently, China accounts for about 30% of the total production capacity of polyester in the world, and its production equipment ranks among the best. China-made polyester products are competitive globally in terms of variety and quality.
The industry is urged to step up integration, expand application areas, and increase added value of production, so as to achieve healthy and sustainable development amidst orderly competition. 
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