In 2006, despite facing many unfavorable factors, such as the high price of raw materials, the lowered tax rebate rate of textile exports, decreased export growth, intensified international trade frictions, continued revaluation of RMB, chemical fiber industry accelerated technological progress and structural adjustment.

Overall trade performance remained healthy, production and sales were relatively brisk, imports continued to decline, export growth captured a high rate, industrial economic benefits increased significantly, the operating quality continuously improved, enterprises and industrial competitiveness enhanced.

From January-November 2006, chemical fiber industry completed the fiber production of 18.2 million tons, an increase of 13.6 percent over the same time of previous year, with annual production to reach about 19.8 million tons.

Polyester output was 14.39 million tons, an increase of 16.2 percent over the previous year, with annual output to reach about 15.6 million tons.

Acrylic fiber output was 769,000 tons, a year-on-year increase of 6.8 percent, with annual output to reach about 840,000 tons.

Nylon output was 762,000 tons, a year-on-year increase of 17.1 percent, with annual output to reach about 830,000 tons.

Viscose yield was 1.328 million tons, a year-on-year increase of 19.6 percent, with annual output to reach about 1.44 million tons.

Chemical fiber production continued rapid growth,the production and sales ratio of main products reached 100 percent. Apart from the polyester staple fiber dropped slightly, all of the other species increased in varying degrees.

Chemical fiber inventory was basically at the same level as last year, but the inventories of several major varieties differed greatly. The inventory of acrylic fiber and viscose staple fiber increased, while polyester staple fiber and viscose filament yarn stocks dropped substantially.

While production and sales were both brisk in domestic market, chemical fiber imports still declined faster and exports continued to grow at high speed.

In January-November 2006, total imports of chemical fiber amounted to 1.18 million tons, a decrease of 15.8 percent from the same period of previous year, annual imports were about 128 million tons.

In January-November, imports of general trade were 444,000 tons, accounting for 37.6 percent, declined 22.1 percent; imports of processing trade were 689,000 tons, accounting for 58.3 percent, down 9.4 percent.

From the breakdown of varieties, polyester imported 480,000 tons, fell 17.6 percent, of which polyester staple fiber declined 25 percent.

Acrylic fiber imports were 313,000 tons, a substantial drop of 27.8 percent.

Nylon filament imported 239,000 tons, an increase of 7.7 percent.

From the regional perspective, Chinese Taipei, South Korea, Japan still took the top three spots among suppliers, which accounted for 41.5 percent, 16.2 percent and 14.8 percent of total imports, respectively.

From January-November, total exports of chemical fiber were 951,000 tons, a year-on-year growth of 48.4 percent, with obvious export growth in all the major varieties, and annual exports estimated to exceed one million tons to 105 million tons.

During January-November, the exports of polyester filament, polyester staple fiber and viscose filament took the top three spots with 353,000 tons, 271,000 tons and 81,000 tons, respectively and accounting for 37.1 percent, 8.57 percent, and 8.5 percent of the total exports.

Since the first three quarters of 2006, China has become net exporter of polyester filament, polyester staple fiber and spandex, with net exports of 113,000 tons, 32,000 tons and 4,861 tons, respectively, from January-November.

This is a concrete expression of the significant technological progress and improved industrial competitiveness of China’s chemical fiber industry in recent years.