Where Is The Pricing Power Of China'S Textile Raw Materials &Nbsp?

Iron ore in recent years

China's "manufacturing power" and "

"Involuntarily" say the price

In a recent industry meeting, Chen Yulin, chairman of Xinxiang egret chemical fiber Refco Group Ltd, was rather helpless about the viscose market.

According to him, the cost of pulping of viscose fiber raw materials was originally 5000~6000 yuan / ton, but now it has risen to 8000 yuan / ton, and with the rapid fluctuation of cotton prices, the price of viscose fiber has dropped from 28 thousand yuan / ton to 24 thousand yuan / ton for only a few days.

Chen Yulin has been fighting for decades in the chemical fiber industry, and is recognized as an elder in the viscose fiber industry.

As early as a year ago, when reporters interviewed Chen Yulin at the 50th anniversary celebration of the egret chemical fiber factory, he felt deeply about the long-term shortage of viscose raw materials and the weak pricing power of domestic enterprises.

Chen Yulin told reporters that the global viscose filament production capacity of about 300000 tons, China has more than 200 thousand tons of capacity.

However, the absolute superiority in quantity does not fully win the right of bargaining for domestic enterprises.

Taking more than 90% of the imported wood pulp as an example, the foreign production cost is about 600 US dollars / ton, but the recent sales price has reached as high as 2600 US dollars / ton, but domestic enterprises have no right to say "no".

Reporters also recall that in a forum in Shanghai in March this year, people from Cixi, China's "plush city", urged domestic acrylonitrile enterprises to develop and produce acrylic products instead of imported ones, so that they no longer put up with raw materials.

It is reported that due to the prominent contradiction between supply and demand, the price of flat acrylic fiber imported from Japan has risen from 20 thousand yuan / ton to 33 thousand yuan / ton in more than 1 years, and some products even reached 40 thousand yuan / ton high, up to 44%~75%.

At the same time, the difference between domestic acrylic fiber and Japanese flat acrylic fiber is close to 8000 yuan / ton.

In the first quarter of this year, with the sharp fluctuation of cotton prices, the price of chemical fiber products has risen, but the overall increase is less than that of raw materials. The cost pressure can not be completely pferred to the downstream.

Because of this, the price of chemical fiber has increased, while the profits of chemical fiber enterprises have been shrinking rapidly, and some enterprises have even suffered losses.

As for the fact that the industry chain is difficult to pfer prices upward, the industry is interpreted as "problems related to the pricing mechanism".

"Smile curve" is missing at both ends.

Chemical fiber is an important raw material in the textile industry, and it is at the front end of the entire textile industry chain. This position gives the industry its own corresponding characteristics.

For example, from the cost of raw materials, it accounts for more than 90% of the cost of chemical fiber production. However, the proportion of chemical fiber as the textile raw material in the production costs of fabrics, clothing and other enterprises gradually decreases.

According to statistics, Yang Zhaohua, President of China Textile Association, pointed out that the cost of home textile raw materials is different from that of enterprises: small enterprises account for 75% to 90%, ordinary enterprises are 60%, and backbone enterprises are about 40%.

For a garment, its fiber accounts for only a few thousand dollars.

According to the analysis of cost components, chemical fiber should have considerable bargaining power in some links at least.

However, the industry is embarrassed. On the one hand, it is almost impossible for chemical fiber enterprises to compete for pricing power in front of the world's raw materials giants. On the other hand, it is difficult for many downstream users to accept the fact that prices are rising.

"What to buy is expensive and what to sell is cheap" reflects the aspirations of many chemical fiber enterprises.

Look at how accurate the definition of pricing is, that is, having the initiative in product pricing, and if changing the pricing of products will not have a negative impact on demand.

The company with pricing power can smoothly pass the price increase to the downstream without affecting the sales volume.

Industry analysts believe that the reason for the lack of pricing power lies in the constraints of resource scarcity, and the lack of both ends of the "smile curve" in the domestic industry, which is relatively weak in upstream R & D capability and lagging behind in the downstream marketing system.

It is undeniable that many of the production technology and equipment of chemical fiber raw materials are still monopolized by foreign related enterprises, or are controlled by several large enterprises in China.

The main raw materials of polyester, such as MEG, main raw material of nylon, CPL, main raw material PTMG of spandex, have similar situation. The main raw material of viscose fiber pulp and pulp, due to the serious shortage of domestic resources, will also rely on imports for a long time.

The pricing power of these varieties can hardly be grasped by domestic enterprises in the short run.

It is gratifying to note that the main road of PTA for the main raw material of the polyester industry is developing smoothly. In the past two years, a large number of production capacity has been released, which will be conducive to the stable supply of PTA in China, and promote the pricing power of domestic enterprises.

The lagging behind of the marketing system directly leads to the lack of brand and the small profits of enterprises.

With the increase of raw material prices and labor costs, the products of enterprises are not obviously irreplaceable, so the price increases become difficult.

For a long time, the consumption of large quantities of goods has led Chinese consumers to develop the consumption thinking of "cheap Chinese products as long as they are cheap".

Ask those fabrics or knitting enterprises, whether they have the same functional fiber, they are willing to buy domestic, or spend several times or even more than ten times the price of imported foreign countries.

Many downstream enterprises have taken the "fiber and fabric all derived from imports" as the biggest publicity point.

To fight alone is not feasible.

There is hardly any fact that there is a large international enterprise with full pricing power in China, so that the concerted efforts of all parties will become an urgent need objectively.

However, the subjective will, interests and demands of various parties, as well as the limitations of relevant systems, have greatly reduced the effectiveness of such cooperation.

Some people have told reporters many times that although many years have been formed and various alliances have been formed, the awareness of winning the domestic industry chain is still not strong, and the links are still relatively isolated.

In the procurement of viscose raw materials, Chen Yulin believes that a very important reason why no pricing power is available is that each enterprise purchases separately.

Chen Yulin believes that raw materials in viscose industry is a thorny and long-standing problem.

If the relevant enterprises can jointly purchase internationally in some way, it will be very beneficial to stabilize the supply of raw materials and reduce the price of raw materials.

But he also acknowledged that from the current situation, unified procurement is very difficult.

Yao Zhigao, Minister of research and development of Tangshan Sanyou group Xingda chemical fiber, urgently called on relevant state departments or trade associations to take the lead in organizing enterprises to jointly "go out" to jointly control resources abroad and compete for the world pricing power of chemical fiber products.

Cooperation between associations has become increasingly frequent.

Last year, the functional Home Textile Forum of the Permian bridge was jointly organized with the polyester forum. This year's cotton spinning, knitting and chemical fiber Council, the three major exhibitions in spring in Beijing, all have frequent appearance of upstream and downstream associations.

Although it is inevitable that there will be controversy at the conference, there is a consensus that is bound to be constant -- to promote the common prosperity of the industrial chain and "make every link profitable."

Ye Yongmao, chief technology consultant of China Chemical Fiber Association, told reporters that in view of the price chaos in the industry, the next step is to speed up the establishment of a sound price operation system. However, the lack of pricing power of domestic chemical fiber products worldwide raises a higher demand for the construction of a three-dimensional marketing system.

At present, foreign fiber is regarded as a resource for efficiency, such as the three generation cellulose fiber products of Austria Lan Jing, viscose fiber, modal and Tencel.

On the one hand, they are in a state of shortage through market operation (such as "hunger marketing"); on the other hand, they expand the market by constantly innovating applications.

They have absolute pricing power on these fibers.

"Domestic enterprises generally remain in the inertia thinking of" from fiber to fiber ", but they only sell fiber and do not form a" fiber product brand "way of thinking, let alone guide marketing with this mentality.

Wang Huaping, Dean of Donghua University Research Institute, pointed out the marketing crux of the lack of pricing power of domestic enterprises.

He believes that although the industry is actively competing for pricing power, chemical fiber companies are also moving forward, but it will take a long time to really change the current mode of thinking.