| |
Cellulosic fibers include rayon, lyocell, and acetate fibers. Lyocell is a third-generation cellulosic fiber (staple) that has expanded the traditional rayon fibers market. With an increasing awareness of environmental sustainability in the textile industry, the lyocell process, which is environmentally benign, has gained considerable approval and importance for varied end uses. This report provides a discussion of current and future global market trends in the cellulosic fiber industry, with particular reference to the rayon and lyocell fiber sectors.
In 2006, 2.6 million metric tons of cellulose fibers were produced globally, of which 97% was rayon fiber (staple and filament yarn) and the remaining 3% was cellulose acetate filament yarn. Rayon staple fibers accounted for 85% of total rayon fiber production, while filament yarn accounted for the remaining 15%. Asia accounted for 80% of rayon production in 2006, and Western Europe for 17%. Central and South America, and Central and Eastern Europe accounted for the rest. About 45% of the world’s rayon in 2006 was produced in China. Leading rayon producers such as Lenzing and Birla are increasing capacities in Asia as these regions offer competitive manufacturing costs. These capacity expansions coupled with growth in end-use segments (nonwovens and specialty textiles), are expected to result in modest, if not robust, growth of the rayon fiber industry. However, future growth will be dictated by trade constraints and labor laws, rising energy and raw material costs, and the success of specialty businesses geared toward niche markets. For the period 2006–2011, major growth is expected in China, Indonesia, and India with annual production growth rates of 5%, 3%, and 2%, respectively. Global rayon production is forecast to increase by about 3% in the next five years.
The following pie chart shows world apparent consumption of rayon fibers:
As there are considerable barriers to entry in the cellulosic fiber business, this industry is expected to be dominated by a few international players such as Lenzing (Austria) and Birla (India). Over the years, the cellulose fiber industry has seen massive restructuring, with market leaders strengthening their position and weak players losing ground. The structural makeup of this industry varies with country and region, and is largely influenced by the regional and foreign markets that it caters to.
The undisputed leader in cellulosic fiber production is Asia, particularly China. The Chinese market is supported by ever-growing, high-volume apparel production that is primarily directed toward export markets. This Asian industry has gained significant market share as a result of its double-digit export growth, although domestic markets are steadily gaining importance. It is projected by the World Trade Organization (WTO) that the Chinese share of U.S. clothing imports will increase to around 50% versus 16% ten years ago. As larger production volumes are rolled out into export markets, the Chinese fiber industry is striving to shift its focus from quantity to superior quality by the end of 2010.
Among the ASEAN textile industries, Indonesia is of vital importance as it is the sixth-largest man-made fiber industry. Rayon production has ceased in the Republic of Korea, while it has increased in Indonesia and Taiwan because of increased demand for rayon fiber exports. The bulk of the nonwoven requirements in Asia is met by the Indonesian fiber industry, which exports a large portion of its production to China, the Republic of Korea, and other countries. India is viewed as the second-most-important market for viscose fibers after China. Growth in the Indian cellulosic fiber industry is also based on domestic consumption and exports, although future efforts are directed toward an increasing contribution from exports. Future growth in this region is expected to be spurred by applications in the technical textiles and nonwovens sectors. Overall, the explosive growth witnessed in Asia has been triggered by foreign investments, capacity expansions, and huge export volumes following quota removal.
In the European industry, the focus is on high-volume commodity and specialty fiber businesses, although future growth is predicted to be strong in the nonwovens and textile areas. In contrast, industries in Japan and the Republic of Korea specialize in lower-volume, high-value specialty fibers for niche markets. The shrinkage of the local industry in Japan has been marked by a drop in imports of yarn and fabric, and an increase in imports of ready-made garments. |
