Comparison of Polyester Industries in China and India

Investment has happened to some extent, but is controlled by two major players. It was also predicted that several of the chip-to-POY producers would install CP capacity and not rely on chip supply from external sources. Plans to get to 4 million tons have been drawn up, and the textile industry is reshaping itself from a fragmented system to large modern facilities. Several companies are upgrading their facilities in capacity and quality to meet the free trade system under WTO.

Even with such a small polyester capacity, India is still a net exporter of textured yarn and spun yarn. With higher quality materials and lower than Western costs, this still remains a small but viable source for Western companies. The environment is highly suitable to build new capacity due to reduced import duties, lower interest rates and more than $100 billion worth of foreign reserves. Banks were prepared to lend money based on project feasibility, market demand and not based on fazhi.

But something happened in October this year. Increased raw material prices and reduced POY prices hit the small chip-based producers. Making POY from chip is not a viable option under such circumstances. Capacity started shutting down and most small companies are operating at 50% utilization rates. If the situation continues, they will be forced to drop below the 30% level or even shut down. Short term, ideas of integrating back to polymerization are not viable, and Reliance and Indorama plan to bring more than 780,000 tons of new polymer capacity on stream in and . Recent polyester expansion moves by India's big players. will dramatically change the supply posture to the Indian subcontinent. It is unlikely that India seriously will threaten China's dominance in the market.

India has adopted the Japanese Ministry of International Trade and Industry (MITI) model of industry and government cooperation in fibers, textiles and apparel. According to reports, the program is just reaching the commercial phase. It appears there will be a competition between India and China in polyester fiber manufacturing. Countries with smaller commitments to polyester will be squeezed as these two goliaths meet each other in the marketplace of commodity staple polyester.

An assured supply of raw materials, a competitive supply chain, quality-conscious production processes and respect for intellectual property rights are the core strengths of the Indian textile industry. These factors will serve India well as it seeks to take advantage over the competitors.

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MOQ, or Minimum Order Quantity, is a requirement that manufacturers set for the minimum amount of products or materials that must be ordered in a single purchase. In the case of recycled polyester fabric manufacturers in China, MOQ requirements vary widely, ranging from a few meters to several thousand meters.

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Typically, manufacturers will require a lower MOQ for stock fabrics readily available in their inventory. In comparison, order-to-make fabrics may have a higher MOQ due to the need to set up production processes and purchase raw materials specifically for the order.

Buyers need to carefully consider their needs and budget when determining the MOQ they are willing to commit to, as larger orders can often lead to lower prices per unit but may also require a larger investment upfront. By understanding the MOQ requirements of different manufacturers, buyers can make informed decisions about where to source their recycled polyester fabrics in China.

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