Download presentation
Presentation is loading. Please wait.
Published byHoward Snow Modified over 8 years ago
1
Polyester Fiber Overview and Dynamics May 2011 Bill Jasper, Chairman and CEO, Unifi
2
Unifi Global Operations 1
3
Unifi Manufacturing Processes 2
4
Innovation – PVA Brands & Partnerships Retail / Brand PartnershipsPVA Brands PVA portfolio represent 15% of consolidated sales in fiscal 2010 Products utilized in apparel, contract, home furnishings, military, socks and hospitality Steady investment in R&D and commercialization of PVA products remains a strategic priority 3
5
Sustainability Unifi believes in working hard to minimize its environmental impact by doing everything possible to achieve the highest standards for sustainable textiles. Create environmentally friendly products Conserve & Reclaim Water Reduce Energy Consumption Use of Returnable Packaging Operate fuel efficient transportation fleet Backward Integration Recycling Center 4
6
Global Production by Region 5 Polyester Fiber: 33 Million TonsNylon Fiber (Type 6 & 66): 3.3 Million Tons Polyester production is ten times as much as nylon Annual Growth: 4.0 to 5.0% (2010 to 2015) Annual Growth: 1.0 to 1.5% (2010 to 2015)
7
Unifi Polyester Supply Chain Overview 6
8
Polyester Raw Material Chain 7 (0.86 X PTA) + (0.34 X MEG) = 1 Polymer
9
PX (Para-xylene) – Feedstock to PTA 8 Supply/demand became tighter in 2010 and 2011 due to unplanned production outages and robust demand from PTA sector. New projects are scarce for 2011/2012 supporting progressive tightening of global operating rates above mid-80’s. High energy cost set the floor for PX prices
10
PTA 9 Strong operating rates is driven by robust global polyester demand PTA supply tightness expected to last for the rest of the year, due to delays in new projects in Asia/China.
11
MEG 10 A combination of planned, unplanned outages and closures plus feedstock limitations (EO), and speculation in 2010/YTD 2011 kept supply just slightly ahead of demand. No new MEG plants until 2013.
12
Polyester Raw Material Drivers Global supply/demand of key ingredients New plant start-ups or expansions, plant shut-downs (planned and unplanned), Inventory levels, trade flows, regional demand patterns Energy cost Crude oil Natural gas Multiple product effect Variety of products compete for the same molecules used by the textile polyester industry – PET bottle, anti-freeze, fertilizers, gasoline, and chemicals 11
13
Polyester Raw Material Trends 1 1. Tight PX & MEG (90% OR) 2. Hurricane Katrina 2 3 3. Replace MSTDB in gasoline blend resulting in surge in MX / PX demand 4. World-scale MEG plant explosion in Middle East 4 5. Crude oil surge ($140/bbl) 5 6. Significant demand and crude drop due to global economic fallout 6 7. Global demand recovery 7 8 8. World-scale MEG plant shutdown in Middle East 9. Multiple factors despite manageable crude range a. Robust global demand b. Tight PX, PTA, & MEG supply (90+% OR) c. No major RM plant coming on line in 2011/12 d. Cotton impact 9 12
14
Polyester Raw Material Outlook 13 Though pricing stabilization is projected to return during April-June quarter, pricing volatility will continue….
15
THANK YOU!
Similar presentations
© 2024 SlidePlayer.com Inc.
All rights reserved.