Southeast Asia Nonwovens Capability and Demand Improvement – Nonwoven Trade Journal
Whereas financial uncertainty exists within the area across the outlook for 2021, the general outlook is constructive. Attaining the anticipated GDP progress will depend upon managing the distribution of vaccines, controlling sporadic outbreaks of virus circumstances, and managing exit from nationwide borders and inside lockdowns. China’s financial energy is predicted to strengthen the financial prospects of the 5 Asian nations by supporting the exports of the 5 Asian nations to China. International commerce tensions between China and the USA have pale with the onset of the coronavirus and the change of administration in the USA.
Preliminary estimates of GDP progress in 2020 among the many prime 5 nations in Southeast Asia are proven in Desk one. Solely Vietnam recorded constructive GDP progress in 2019, up 2.6%. The area’s largest economic system, Indonesia, fell -2.4% after rising round 5% yearly since 2014.
In Malaysia, GDP progress fell by -5.2%, after a weak efficiency in 2019 in comparison with earlier intervals. In Thailand, GDP fell by -6.4% in 2020 in comparison with 2019. The worst GDP contraction was recorded within the Philippines the place the GDP fell by -9% in 2020. When assessing the actions of the GDP In nonetheless small economies, one ought to be conscious that small modifications in GDP will lead to bigger year-over-year proportion actions than in massive economies. Annual GDP progress, measured as a proportion change from yr to yr, will decline over time as every nation’s combination economies develop.
The affect of the coronavirus on the nonwoven trade within the 5 Asian nations has been considerably lower than on the final economies of those nations. A surge in demand for medical PPE (robes, masks) for each home, regional and export use has boosted the manufacturing of non-woven substrates. As has occurred in different nations around the globe, the demand for disinfectants and different wipes has skyrocketed, as has the demand for hygiene merchandise (diapers, et al.) As a result of client storage. .
Southeast Asia stays a pretty area for nonwoven progress pushed by favorable demographics, financial circumstances, growing market penetration and dynamic demand from native and export markets. The short-term results of the financial slowdown within the area and their comparatively minor results on manufacturing funding and client spending ought to be shortly addressed by way of financial stimulus packages, regardless of the uncertainty surrounding the coronavirus.
The rising market penetration of disposable and sturdy nonwovens in Southeast Asia and China, the place market penetration continues to be low, is a constructive predictor of fine progress in demand for nonwovens within the markets. 5 foremost Asian markets and likewise their export markets. Over time, nonwoven producers within the 5 Asian nations are anticipated to learn from good export demand from China, Japan and different nations in and outdoors the Asia-Pacific area. The most important marketplace for transformed nonwoven merchandise might be for hygienic finish makes use of, adopted by nonwovens utilized in sustainable geotextiles and different markets.
A number of international and regional disposable hygiene producers have conversion operations in Southeast Asia. These producers embrace Kimberly-Clark, Johnson & Johnson, Kao, Procter & Gamble, and Unicharm. The rise in changing capability in Southeast Asia is a testomony to the rising demand within the area and the recognition of the area as a producing base for exports to different Asian areas.
In 2020, the capability of nonwovens within the area consists largely of fantastic spunbond / fused spun denier expertise adopted by a capability of needlepunched and / or warmth bonded carded fibers, spunbonded polyester and medium denier spunbonded polypropylene needle punch expertise. Small however rising services of different nonwoven applied sciences, together with glue carded air, are additionally current.
Between 2015 and 2020, the set up of fantastic denier spunbond and spunfelt polypropylene nameplates within the 5 Asian nations elevated on common by 6.6% per yr, from 185,000 tonnes in 2015 to 255,000 tonnes in 2020. Of the 70,000 tonnes put in throughout this era, CNC / Fitesa (Thailand) put in 15,000 tonnes, Asahi (Thailand) and Toray (Indonesia) 20,000 tonnes every and Fibertex (Malaysia) 15,000 tons. Fitesa / CNC commissioned a brand new Reifenhauser 5 line in direction of the tip of 2020 with an annual nominal capability of 33,000 tonnes. Within the second half of 2021, Asahi will begin putting in a brand new line in Thailand with a capability of 15,000 tonnes. Throughout the identical interval, Fibertex will fee a Reifenhauser 5 line in Malaysia with an annual nominal capability of 15,000 tonnes. These two traces might be totally operational in 2022. Thanks to those investments, the capability spun in fantastic deniers will improve by 63,000 tonnes or 24.7%. This new capability might lead to a interval of oversupply within the area.
In 2020, the nominal capability of the fantastic and medium denier spunbond / spun polypropylene expertise in Southeast Asia was 264,000 tonnes and represents roughly 7% of the overall international capability on this expertise class.
The best focus of this capability is in Thailand the place 43% or 114,000 tonnes of spunbond is now produced by 4 producers. In Malaysia, two producers have a complete capability of 94,000 tonnes, or 36% of the area’s capability. In Indonesia, two producers produce 52,000 tonnes or 20% of the area’s capability. The Philippines additionally has restricted working capability.
Many of the largest nonwoven producers in South East Asia use solely fantastic denier polypropylene spun / yarn expertise and largely provide the hygiene market. Fibertex in Malaysia was the most important nonwoven producer in South East Asia on the finish of 2020 with a capability of 85,000 tonnes.
Asahi (Thailand) has 40,000 tonnes of fantastic denier spunbinding capability firstly of 2021. FitesaCNC in Thailand has 72,000 tonnes of fantastic denier capability firstly of 2021 and Mitsui in Thailand has 30,000 tonnes.
Southeast Asian fine-currency producers will proceed to rely closely on exports to attain acceptable ranges of capability utilization. The demand for disposable nonwovens is growing however stays fairly low in comparison with the put in capability within the area.
Unitika commissioned a 30,000 tonne spunbond polyester line in Thailand in 2017, making it the sixth-largest nonwoven producer in Southeast Asia. The nonwovens on this vary might be utilized in carpet coverings, geotextiles, roofing, automotive and different industrial purposes.
Ten Cate is the one producer of medium denier spunbond polypropylene nonwovens in South East Asia. These nonwovens are needled and provide the marketplace for geotextile and different associated finish makes use of. Ten Cate’s annual rated capability is 9,000 tonnes and has been unchanged since 1996.
Producers of carded air by way of bonded nonwovens in Southeast Asia embrace Ocean Money in Malaysia, JNC in Thailand and Daiwabo in Indonesia. Nan Liu (China), which introduced the set up of recent wire and air crossing traces in India, additionally introduced that it will set up new capability in Vietnam. No timeline or expertise has been introduced. Nan Liu now manufactures by way of and spun nonwovens in China.
David J. Value is the writer of Value Hanna Consultants LLC’s annual subscription report “Spunbonded and Spunmelt Nonwoven Polypropylene World Capacities, Provide / Demand, Manufacturing Economics and Profitability”. The latest report might be launched within the first quarter of 2021 overlaying the interval 2015, 2020-2025. To acquire an in depth prospectus for this research, please contact Michele Scannapieco, Value Hanna Consultants LLC, at [email protected]