China ramps up polyester fibre production

China is expecting to add 42 Mt of PTA between 2020 2026, 2026, equivalent to about 50 Mt of polyester fibre. Yet global additional polyester fibre production over this same period is currently estimated at just 10.7 Mt. Chinese polyester fibre producers are adding 6.8 Mt of polyester fibre capacity over this period but the latest announcements point to further expansions. With some of the Chinese polyester fibre majors back integrating into PTA and PX, China’s polyester fibre producers will have an almost unassailable scale and cost advantages. These developments point to a major squeeze on polyester fibre producers in other countries. This is a major challenge to nearshoring strategies as countries seek greater resilience in their textile and apparel supply chains.