Surplus Of Low End Products: Alarm For Supply And Demand Of Polyester Industrial Yarn

Face Low end products Surplus, expert advice Polyester industrial yarn Enterprises should develop some high-end vehicle textiles such as silk for automobile safety belt, silk for airbag and so on.

Not long ago, the EU made initial anti-dumping measures against polyester high strength yarns originating in China. In the preliminary ruling, the European Union chose our Taiwan as an alternative to calculate the normal value of the products involved in China. It was judged that there was no anti-dumping in Zhejiang Hai Lide new material Limited by Share Ltd, and a temporary anti-dumping duty was imposed on other enterprises involved in 7.7%~9.3%.

It will be rewarded if you practice well.

After learning of the news, Ge Jun min, chairman of Zhejiang Hai Lide new material Limited by Share Ltd, was pleased with his brow, and his heart hung down at once. He told the "textile and clothing weekly" reporter, this is only a preliminary ruling, and in December, there will be a final ruling, but according to experience, there will be no change in general. Looking back on the way of responding in the past year, he felt a lot of emotion.

Last September 8th, the European Commission launched the polyester high strength yarn originating in China. Anti-dumping Investigation. This is the first time the European Union has launched a trade remedy investigation of textiles in China after the EU textile agreement expired at the end of 2008. The case involved 40 enterprises in mainland China, involving more than 100 million US dollars. After the incident, Ge Jun min quickly collected materials and organized lawyers to sue. In December 2009, EU officials came to Halliday for verification. In a week, they made meticulous and even harsh checks on the ownership structure, governance structure, standardized operation, cost sale price, personnel management, procurement and other aspects of the enterprise, and after several months, they made such a satisfactory decision.

"The data we provide are true and reliable, and can withstand the verification of EU officials." Speaking of the reasons behind the phasing results, he was confident. As a listed company, Halliday is very strict in daily management, and the information such as financial statements and operational data is reliable and reliable. Ge Junmin analysis said that it is precisely the usual emphasis on practicing internal strength that enables enterprises to remain calm in the face of challenges.

For the analysis of Ge Jun min, Zheng Junlin, Secretary General of China Chemical Fiber Industry Association, agrees. Zheng Junlin told reporters that in general, domestic enterprises want to win in the anti-dumping cases initiated by the developed countries and countries such as the European Union, generally speaking, there are two situations. One is that an enterprise must be an independent operation and self financing market economy entity. Its operation is very standardized, and various systems are sound and perfect. It can provide evidence that government subsidies have not been accepted in three years, and the cost of industry is also legitimate and reasonable. The other is foreign-funded enterprises in China or Chinese enterprises, or even holding EU enterprises. EU countries and countries will take into consideration the interests of their enterprises and industries to make decisions that are good for the region and the country. It is in fact the first case that Halliday achieved such satisfactory results in the preliminary ruling. Halliday itself is a listed company and its management is more standardized, so it can provide convincing evidence.

Zheng Junlin added, but it is not enough to have solid data materials. Enterprises must recognize the situation positively. Generally speaking, some enterprises think that the odds are not great and they will cost a huge amount of litigation fees and feel unworthy. They will give up their actions; others think that their enterprises are small and their exports are few. Some enterprises, though responding to the lawsuit, face the sunset final judgment five years later. The EU often fails to make judgments, continues to review the enterprises and continues to levy anti-dumping duties. The way to respond is a marathon, and many enterprises are also unable to afford it, resulting in a fear of difficulty. However, careful calculation, if a successful lawsuit, bring a lot of returns to the enterprise, perhaps in the five years from the filing investigation to the sunset final judgment, the winning company will squeeze out the opponent and occupy the bulk of the export market. There will be hope in the lawsuit, and there will be no hope of not responding. To this end, China chemical fiber industry association is also making use of the opportunities of various conferences and forums to mobilize and persuade enterprises to actively respond to lawsuits. Many lawyers have also been invited to give guidance to enterprises.

Zheng Junlin also mentioned that once an enterprise respondent, a lawyer familiar with the anti-dumping business must be invited. In particular, he must be familiar with the laws and regulations of the European Union and understand the local accounting standards. In this way, we can avoid some potential risks within the scope of the law when preparing materials.

Short term supply and demand contradiction should focus on upstream and downstream collaboration

If the anti-dumping investigation is the external challenge faced by the polyester industrial yarn industry represented by polyester high strength yarn, the contradiction between supply and demand increasingly prominent in the domestic market is another difficult problem facing the whole industry in recent years.

According to Ge Junmin, by the end of 2009, the production capacity of polyester industrial yarn in China (including Taiwan area) was 1 million 67 thousand tons, and the mainland of China was 966 thousand tons, accounting for 50% of the world's total. From the transition from heaven to hell, in 2008, the industry and enterprises ushered in a brutal 2009, which was affected by the financial crisis. In 2010, with the emergence of signs of recovery, the capacity of the industry increased. It is reported that a large enterprise in the industry has launched 200 thousand tons of industrial yarn project recently. With the commencement of similar projects, the contradiction between supply and demand of the market is increasingly prominent, which is mainly reflected in the surplus of conventional low-end products, but the demand for high-end products is in short supply. In addition, the development speed of downstream industries is not up to the speed of the development of polyester industrial yarn industry, which has also created the contradiction between supply exceeding demand.

Zheng Junlin analysis said that the contradiction between market supply and demand and low profit rate is temporary and short-term. This contradiction is also a structural contradiction. Now the scale of enterprises in the field of industry is relatively small, and the products are mainly conventional varieties. In view of these problems, Zheng Junlin believes that the upstream and downstream enterprises should cooperate with each other to jointly formulate strategies for product development and sales so that both suppliers and buyers can have a good idea of production and sales. Specifically, it is to increase the scope of downstream applications of Dacron industrial yarn. For example, in the field of automotive textiles, automobile safety belt silk, airbag wire should be developed. Zheng Junlin also reminded enterprises that the upstream and downstream enterprises need to invest more in technology, equipment input and new product research and development because of the increased access threshold.

Ge Junmin believes that due to the expansion of production capacity, the polyester industry silk industry, which has already been in the meager profit, is suffering from worsening in the critical moment. It is not worth recommending to stop the loss of efficiency by stopping production and limiting production. We must choose a good development route, that is, we should enhance the operation level of the industry, transform backward production capacity into high-quality production capacity, and achieve product upgrading.

In the post crisis era, Ge Jun min believed that the development of the industry should be promoted in many ways. First, we should extend the industrial chain and enhance the enterprise's ability to resist risks. The two is to improve the application technology of polyester industrial yarn and expand the production capacity of high-end products. The three is to avoid low cost expansion and improve product value. The four is to establish a standardized management pattern and synchronize with the world. The five is to follow the national policies and develop differentiated products. This is also the need for market segmentation. Finally, we should standardize the development pattern, avoid blind investment and disrupt the market.