Lenzing expects price pressures to increase
15/03/2019
It attributed this dip to a challenging market environment for standard viscose, less favourable exchange rates and a slight decline in sales volume.
Discussing the results, CEO Stefan Doboczky struck an optimistic tone, saying: “Although 2018 proved to be more challenging than the preceding years, it was, nevertheless, the fourth best year in the company’s history. The very positive development of our specialty business in an expected challenging market environment for standard viscose confirms our strategic direction and our ambitious plans.”
Lenzing has said it expects its results for 2019 to be on a similar level to last year, despite a more difficult market environment for standard viscose.
It also gave some projections about the wider global fibre market, where it said demand is still positive. It expects cotton inventory levels to decline slightly in 2019, with price levels for cotton and polyester remaining stable. With capacity expansions for standard viscose staying at the same level, Lenzing predicts there will be a growing oversupply, putting even more pressure on prices.
Image credit: Lenzing.
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