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Lenzing Increases Fiber Prices
07.02.2000
Following price increases at the beginning of the year Lenzing AG, the world's leading manufacturer of man-made cellulose fibers, will further raise the price level for viscose fibers, which continues to be unsatisfactorily low.
There are plans to increase prices by a minimum of 5 per cent, depending on the type and speciality, as of the second quarter of 2000.
After a dramatic collapse of the market in early 1999, manufacturers had to accept considerable price reductions. It was only in the second half of last year that first upward corrections became possible.
The general environment has been improving steadily: viscose fibers are scarce, prices for synthetic fibers follow an upward trend, businessmen report better sales, and Europe's economy is recovering. Both, in the textile sector and regarding nonwovens (hygiene products), a pronounced expansion of quantities is becoming noticeable. There is much demand for Modal and Modal Micro fibers from Lenzing. Stocks are low which means that supplies can hardly satisfy demand. The result are delays in delivery while working to full capacity.
After the slump, at the beginning of last year, prices for viscose fibers continue to be at an unsatisfactory level. At the same time, prices for primary materials are going up.
Lenzing AG uses the welcome market recovery to gradually correct the low price level in the upward direction. In a spirit of optimism, Lenzing is off to a good start of the new year.
The preliminary business results for 1999 will come out in late February / early March.
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