Wednesday 21 August 2013

Tencel sales to nonwovens up 25%

The following paragraphs are extracted from Lenzing's 2nd quarterly report for 2013.  

The global nonwovens fiber market developed robustly in the first half of 2013 against the backdrop of very good volume demand. However, the declining textile fiber selling prices, also in the nonwovens sector, also led to some price pressure.

Lenzing set new sales priorities in its nonwovens business in the first half-year, for example in Europe, where demand developed well. On balance, shipment volumes in the first half of 2013 climbed to about 131,000 tons (H1 2012: 115,000 tons). There was a significant volume increase for TENCEL® of approximately 5,000 tons to close to 23,000 tons.

Average fiber selling prices for Lenzing nonwoven fibers remained stable in the first half-year at EUR 1.75 per kilogram, but were below the comparable level in 2012 (EUR 1.84/kg) in line with the general price trend. As expected, the price decrease was not as pronounced as in the textile segment.

Demand for TENCEL® used in textile applications could also be maintained at the same high level by implementing corresponding marketing campaigns. These measures related to all types of TENCEL® fibers, serving as the basis for full capacity utilization at the TENCEL® production plants. In spite of the disruption in production at the TENCEL® factory in Heiligenkreuz, total volume reached a level of 43,000 tons in the first six months of this year, slightly above the prior-year figure of about 42,000 tons. TENCEL® selling prices developed stably throughout the entire first half of 2013, featuring price premiums of about 50% vis-à-vis viscose, but significantly below the premiums attained in the first half-year 2012. 

Lenzing's full quarterly report is now available for download here.

Presentation slides are also available here

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