2023 China chemical fiber industry in-depth research

On the other hand, for specific functional and differentiated products, upstream and downstream enterprises have deep technical exchanges and cooperative development in product final application and production matching, and the cooperative relationship is relatively stable, and downstream enterprises will not easily change suppliers. As a result, the differentiated, functional fiber segment has high customer barriers.

Financial barriers: In order to ensure the stability of product quality and supply, enterprises in the industry need to have a certain safety stock of raw materials. In addition, as the main raw materials of the industry are petrochemical products, their prices fluctuate with the international crude oil prices, and it is necessary to increase a certain amount of raw material reserves when the crude oil prices rise rapidly, and the main producers of the above-mentioned raw materials have strict settlement conditions and usually adopt the mode of payment before delivery, so the procurement and production of raw materials require a large amount of working capital for turnover.

On the other hand, enterprises need to invest a lot of money to buy production equipment and update testing equipment, and later maintenance is also very critical, and it also needs greater financial support. Therefore, there are certain financial barriers to industry entry.