China Chemical Fiber Industry Association: Chemical Fiber Enterprises Do Not Panic

However, with the recent decline in cotton futures, many varieties of chemical fiber prices also fell sharply.

In this case, China Chemical Fiber Industry Association issued a warning: chemical fiber enterprises should not panic, do not panic selling and other irrational competition.

If necessary, the enterprise can stabilize the market by increasing the stock of products and reducing the start rate, and restore the balance of supply and demand.

The price of chemical fiber products is "roller coaster".

Since the beginning of September, the prices of major chemical fiber varieties have increased rapidly.

The fastest rise was polyester staple fiber, which doubled in November 10th and viscose staple fiber increased by 12000 yuan / ton, or up to 67%.

Prices of other varieties also rose to varying degrees, but the increase was much less than that of viscose staple and polyester staple fibers.

Chinese Chemistry

In view of this rising market, Zheng Zhiyi thinks there are two deep reasons: first, the price rises led by short staple fiber, especially polyester staple fiber, and the main reason for short fiber rising is that cotton prices have seen 15 years of rapid rise, which has more than doubled from the beginning of November 10th to the beginning of the year.

"However, the amount of chemical fiber directly related to cotton spinning accounts for only 40% of the total chemical fiber, and cotton prices can play such a role. This is worth the attention of the industry and enterprises."

He said.

Two, the price rise of chemical fiber is driven by market demand.

The relationship between chemical fiber (mainly staple fiber) and cotton is a substitution relationship of market demand. The rise of cotton price has caused rapid increase in demand for chemical fiber and caused rapid price rise.

Zheng Zhiyi explained that the current

In the past, cotton inflation happened in 1995, which was caused by the accumulation effect of severe inflation.

Another reason is that the domestic cotton statistics are not true, causing erroneous judgement of the market, especially inventory.

This time, the supply and demand change is the basic reason for the rise of cotton prices. A large amount of capital speculation is an important factor to drive the soaring cotton prices.

As predicted by Zheng Zhi Yi, the cotton speculation is coming to an end. On November 11~12, cotton futures fell sharply, and there were two successive stops.

Reporters saw that in December 3rd, the price of polyester staple fiber has dropped to 13200 yuan / ton from the highest level of 19800 yuan / ton in November 10th, and the price of viscose staple fiber has dropped to 28200 yuan / ton from November 11th's highest 30800 yuan / ton, on the same day, it dropped 800 yuan / ton.

Enterprises should be cautious.

The price of chemical fiber products fluctuates greatly. How should the chemical fiber industry deal with this severe situation? How can enterprises avoid market risks?

Zheng Zhiyi believes that, first of all, the sharp rise in prices of chemical fiber products is, on the surface, a strong demand driven by the market, but it is obvious that cotton speculation causes a vicious factor of its high price.

According to the operation rules of international agricultural futures, and the characteristics of this hot money concentrated cotton, Zheng Zhiyi judged that under the influence of a large number of idle funds to escape, it may cause a sharp decline in the latter market, which will cause the prices of chemical fiber upstream and downstream products to drop sharply. There may be a serious market disorder of the textile chemical fiber that once occurred in the financial crisis in 2008 9~10.

Duan Xiaoping, President of China Chemical Fiber Industry Association, said that the world's cotton market is not a complete market economy. There are high cotton subsidies in the United States and Europe and other countries and regions, and China's cotton import quota, sliding tax and national cotton storage mechanism.

"Under such circumstances, the market has seen dramatic changes in the price rise over the past 15 years, which is worthy of careful consideration and in-depth study by our macro field workers."

He said.

In this case, Xiaoping reminded enterprises, in the face of this grim situation, the most important thing for enterprises to adjust their mentality is not to panic.

First, the state's pformation of development mode and the determination and measures to continuously expand domestic demand growth have not changed. The momentum of domestic demand continues to grow, and the basic driving force behind the development of the chemical fiber industry still exists.

Second, judging from the market situation, in recent days, the prices of chemical fiber products are weak, but they are still mixed with each other. The enterprises basically keep the balance of production and marketing, and the pressure of inventory is not large. Besides, the strength of middlemen in the chemical fiber market is not strong, the stock is not large, and the pressure of hoarding and selling is not very big.

Third, judging from the current price of chemical fiber, chemical fiber and cotton still have strong price advantage.

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Xiaoping said: "before we oppose the vicious speculation, we also oppose irrational selling behavior such as panic selling. The collapse and boom are very unfavorable to the upstream and downstream businesses.

If necessary, enterprises can also stabilize the market and restore the balance between supply and demand by appropriately increasing product inventories and lowering operating rates.

In addition, in view of the sharp fluctuations in cotton prices, Xiaoping added that cotton is a subsidiary agricultural product. According to the general market rules, the market will be gradually returned to the market next year, and the chemical fiber industry should also make preparations for this.

In his view, first of all, we must make preparations for the sharp decline in the market prices of chemical fibers.

First, we must control the stock mainly by reducing the stock of raw materials and products. Two, we should get enough cash flow, for example, if the profit is good, the enterprises can make some reserve for loss. Three, the chemical fiber industry will try to increase the operating rate, increase the supply and ease the contradiction between supply and demand.

At present, the sliced spinning enterprises that have stopped production in the early stage are accelerating the resumption of production. The recycled polyester enterprises also buy raw chips to improve the utilization ratio of the devices, so the market supply of polyester filament is gradually increasing, which is conducive to stabilizing prices, stabilizing the market and accelerating the rational return of the market.