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Industry News | Time:Jun 26 2018 2:05PM
Influence of environmental protection regulation on polyester and downstream market in Jiangsu
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On Jun 5, the fourth environmental protection inspectorate from central government came to Jiangsu, which aroused much concern from Jiangsu government. By June 19, 442 companies were punished on the violation of environmental protection regulations.

The 20th Tripartite Environmental Ministers Meeting among China, Japan and South Korea was held in Suzhou, Jiangsu during Jun 24-25. In order to do a good job in monitoring air quality during the conference, the Suzhou Meteorological Observatory and the Suzhou City Environmental Monitoring Center have jointly formulated environmental air quality monitoring and early warning work plan and fully implemented safeguard measures from Jun 20.

The environmental protection treatment in Jiangsu affected polyester industry and its downstream market again, and the specific influence to different regions like Wujiang, Changshu, Taicang, Jiangyin, Changzhou and North China was analyzed below:

It was learned that the polyester companies in Wujiang were not impacted by environmental protection treatment temporarily, while downstream water-jet looms were strictly limited production, especially in Shengze, and dyeing plants were forced to curtail production too. Some water-jet weaving plants near Shengze were also required to restrict production.

Affected by environmental protection regulation, operating rate of dyeing plants was forced to decline by 20% in Changshu, which would start from Jun 20 to the end of year. Operating rate of warp knitting plants slightly dipped with mounting inventory and apparent capital problem impacted by production limitation in dyeing plants. The run rate of twisting plants and polyester plants were normal there. Besides, the fire safety issue was under severe rectification in Changshu.

Polyester units and twisting plants in Taicang were not affected by environmental protection regulation by now. But local government has started implementing fire safety treatment on the twisting plants, and the enterprises that have hidden dangers in safety are urged to make corrections.

Jiangyin, Changzhou:
Most dyeing plants in Jiangyin were asked to shut down for correction temporarily. Many polyester bottle chip plants and staple fiber plants were required to cut production by 20-30%, but the actual influence still needs further observation as the implementation has not started yet. Polyester capacity in Jiangyin amounted to 4.33 million tons, and the 1 million tons capacity of CR Chemicals in Changzhou has been reduced by 40%.

North Jiangsu:
Environmental protection inspection was also seen in North Jiangsu, and some water-jet loom companies that have not met environmental protection standard were also required to curtail production, but local polyester plants were not impacted temporarily.
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