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2008 Manmade Fiber Output Expands, Slows, and Grows More Concentrated fibre

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Long the driver of rapid growth in Chinese textile production, mills' output of synthetic fiber is not immune to the contagion afflicting the rest of the industry. In step with the gradual slowdown in the broader Chinese textile complex, China's output of manmade fibers also continues to decelerate in 2008. May volume climbed only 2.5% from a year earlier, its weakest performance in over three years. This tepid growth brings marketing year-to-date (Aug-May) growth down to just 12.4% from the same period last year, well below the 20%+ growth seen over recent marketing years.

During this period of slower growth, several larger-producing provinces grew faster than the rest of China, implying they now account for a larger share of total Chinese synthetic fiber production. With the largest share of total Chinese output, Zhejiang province continues to be the engine behind the expansion of Chinese synthetic fiber production. Over the first five months, Zhejiang output climbed in line with the rest of the country, up 12.4% from the same period last year. Production in Jiangsu and Fujian provinces outpaced growth in the rest of the country, climbing 19.5% and 22.1% respectively in 2007/08 from a year earlier, implying these regions now account for a larger share of provincial synthetic fiber output. These three largest provinces now capture a record share of manmade fiber production in China, higher each of the last five years. While in 2003/04 less than 70% of total volume came from these three provinces, now over 81% of total Chinese synthetic fiber production originates in these three regions.

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