Chemical Fiber Prices Rose By &Nbsp; Xinmin Technology Products Were In Short Supply.

Because

Upgrading of chemical fiber industry

It is understood that in China's textile fiber consumption structure, cotton, viscose staple fiber and polyester staple fiber dominate. Cotton spinning enterprises spin it into cotton and blended yarns, and then weave yarn and viscose filament and polyester filament into cotton and blended fabrics by weaving enterprises.

Due to the limitation of output, the proportion of cotton in textile fibers has gradually decreased, while the proportion of chemical fiber has increased steadily. Polyester fiber accounts for the largest proportion in chemical fiber, and its proportion increases rapidly. The substitution effect on cotton is most obvious.

Dai Wu, an analyst at Soochow securities, said that the price of cotton is at a historical high. The downstream weaving enterprises are facing higher cost pressures and have to find cheaper alternatives. Therefore, the demand for polyester is booming and prices continue to look good.

In fact, the price of viscose staple fiber, polyester fiber, spandex and other synthetic fiber products has been on the rise recently.

According to the data provided by GF, in recent two weeks, the growth of polyester fiber, viscose staple fiber, viscose filament and other synthetic fiber products has increased by more than 5%, and the price difference of Spandex Products has increased due to the increase in product prices.

Business news, 11, the largest viscose manufacturer in Shandong, Hailong made the price of viscose staple fiber again raised by 500 yuan, and the 1.5D market quotation once again refreshed to 21 thousand and 500 yuan / ton.

The price adjustment of leading companies has made some traders eager to move. As the demand for textile and garment industry has increased and the export season is coming, some enterprises are likely to hear the news about price adjustment.

Yesterday afternoon, A shares market chemical fiber board accelerated up, has responded to the recent product price trend.

Xinmin technology products are in short supply.

"In the context of soaring cotton prices, polyester filament is expected to enter ‘ super boom cycle &rsquo."

Dai said that the traditional polyester industry is affected by the market supply and demand, and the fluctuation of product prices is obvious. It is difficult for enterprises to obtain sustained and stable returns. The differentiated and functional polyester filament has more competitive advantages due to its own characteristics and high added value.

Xinmin technology and Halliday all produce polyester filament, but Haley mainly produces industrial polyester filament. Xinmin technology differential polyester filament as a new direction of textile industry development will obviously benefit from the current cycle.

As the industry boom continued to improve, Xinmin technology 11 revised the previous three quarter earnings forecasts, revised the net profit growth of 1-9 months from 80%-110% to 120%-150% this year.

The company said that the downstream industry's demand for differentiated fiber polyester filament was particularly strong, and the operating performance of Xinmin chemical fiber and Xinmin high fiber company continued to improve. Meanwhile, the gross profit margin of the differential fiber polyester filament and the continuous increase of the ring ratio continued. The gross profit margin in the three quarter increased by 11 percentage points over the two quarter gross profit margin, which far exceeded the original estimate.

Lu Ruifen, Secretary of Xinmin technology board, told reporters that in addition to the increasing demand for downstream, the price rise of polyester filament and the soaring price of cotton are also related, and the prices of related production materials are rising.

Due to the bottleneck of the expanding production scale of polyester filament industry and the wide demand for downstream products, she personally expects that the current hot market of polyester filament is likely to last until the second half of next year.

Lu Ruifen said the bottleneck is the production of high-quality polyester filament needed equipment - spinneret, according to her introduction, such spinneret can only be produced in Japan, Europe and other three companies, the production of spinnerets of these three companies are in short supply, the old customers now order goods, the equipment will also be delivered in the second half of 2012, and new customers will be discharged until 2013.

At the same time, downstream demand for polyester filament is increasing. The company has received tens of millions of advance payments from downstream customers, and products are already in short supply.

Dai believes that this year's May non-public offering investment project - the annual output of 200 thousand tons of differential fiber polyester filament production line is the highlight of Xinmin technology's future performance. The project is progressing smoothly and is expected to be put into operation in March 2011.

After the completion of the project, the company will enter a period of rapid development. The production capacity and operating income of polyester filament are expected to double. Meanwhile, the raw material price of polyester filament will also drop due to self sufficiency.

It is worth noting that the above new projects of Xinmin technology have been sought after by Hengtong group in Wujiang. The main business of Hengtong group is the cable industry, the largest shareholder of Hengtong optoelectronics.

From the perspective of Xinmin technology share price, Hengtong group has invested 100 million yuan to subscribe for the 20 million shares of Xinmin technology.

Xinmin technology yesterday closed at 10.48 yuan, up nearly 5.4 times the issue price.