Does The Chemical Fiber Industry Usher In A Turning Point?

The price of PTA rises more than 10% in one month, and the rate of production and marketing of some enterprises reaches 200%. Is the continuous downturn of the chemical fiber industry ushered in "inflection point"?

Industry analysis: price increases, demand is not prosperous, the prospect is not yet clear.

The price of raw materials of Qian Qing textile raw material city is a "wind vane" of domestic chemical fiber raw materials. Since May this year, the prices of all kinds of chemical fiber raw materials in Qian Qing textile raw material city have changed since 2011, and the situation has continued to be low since 2011.

　　 Polyester fiber Silk prices exceed 10000 yuan

Wang Liang is the operator of Qian Qing textile raw material city. He has been engaged in chemical fiber raw material business for many years. In the past two years, because of the market downturn, every time he bought goods, the quantity was not large, and he was more cautious. But the trend of chemical fiber prices in recent months has left him with a big surprise. "Weekly fiber prices will rise." Wang Liang disclosed that now many operators in the market have opened their appetite to eat goods.

Reporters from the latest two weeks Qian Qing textile raw material city chemical fiber raw material market trend found: in June 16th, the Shaoxing District direct spinning factory polyester yarn general price broke through 10000 yuan per ton mark, and in June 13th, the same polyester yarn is still maintained at 9500 yuan per ton.

"The trend of chemical fiber prices is quite obvious now." Along with the strong price of chemical fiber raw materials and the active market, the PTA, polyester chip and polyester filament production enterprises of Yuandong chemical fiber, Tiansheng chemical fiber, Southern Petrochemical and so on all show a booming trend of production and marketing.

　 Cost increase drives prices of chemical fiber raw materials up

Since May, polyester fiber and other chemical fiber products have seen a strong rebound in prices, and the production and sales of chemical fiber enterprises have also picked up. Does this mean that the chemical fiber industry that has been in the doldrums in recent years will usher in an "inflection point"?

"The price of chemical fiber increases, the main factor is the upstream product - PTA price rise." PTA production leading enterprise in Yuen District -- far east chemical fiber group The person in charge said. It is understood that from mid May this year, the Far East PTA offer from 10000 yuan per ton, up to now, the price has reached 11000 yuan. "In a month, PTA price rises more than 10%, which is rare." The person in charge said.

"Chemical fiber raw materials prices rise, cost driven is the main reason." According to industry sources, in order to break the market that PTA has been depressed all the time, in May this year, domestic PTA production enterprises adopted self-discipline of industry, effectively controlled the start up rate, and reduced the supply of the whole industry. At the same time, affected by the weakening trend of prices, the current chemical fiber enterprises have smaller stocks, and the market supply and demand tend to be tense, and prices are rising obviously.

　 The prospect of a rebound in the industry is uncertain.

The rise of prices has been used to tight days. chemical fiber Enterprises are undoubtedly relieved. "With the increase of product prices, some enterprises have a weekly production and marketing rate of 200%, and the inventory of enterprises is obviously less." Zhang Jingbo, Secretary General of the chemical fiber Association, told reporters that in the first 3 years, chemical fiber production capacity expansion was too fast. The price of chemical fiber raw material products has been falling, and inventory has become a "heart disease" of many enterprises. With the control of production capacity by major enterprises, the market supply is tight. The price rise in late May and early June helped enterprises to digest the pressure of inventory and improve the profitability of enterprises.

"Whether the chemical fiber industry is warming or not depends on the market demand." Zhang Jingbo believes that this price increase is still caused by cost leadership. Under the background of serious excess capacity in the chemical fiber industry, the prospects for the recovery of the chemical fiber industry are still uncertain. Especially after the price increases, whether the stimulus demand will continue to be sustained remains to be seen, and the market demand has not expanded.

Many industry experts also pointed out that at present, chemical fiber enterprises must speed up technological transformation, develop differentiated products, and get out of the predicament caused by overcapacity in the industry as soon as possible.