PTA Industry Shuffle Acceleration

Recently, Zhejiang far PTA petrochemical company has been in a difficult position in the operation of the Far East petrochemical company. As the market worried about the reduction of PTA supply, the A share related sectors were eye-catching, and PTA futures were also slightly rebounded by the rise of crude oil. According to the Securities Times reporter, at present, the working group has entered the liquidation of enterprises, whether the reorganization has not yet been conclusive.

Far East Petrochemical produces an annual output of 3 million 300 thousand tons PTA, ranking the top five in the industry. The bankruptcy news has attracted widespread concern in the industry. Analysts said that the Far East Petrochemical event indicates that the PTA industry is going to reshuffle, accelerating the trend of eliminating excess capacity or further spreading to large enterprises. However, due to the small capacity of the enterprise in the country, the real impact on supply and demand side is limited, and the PTA futures trend will not have much impact.

The situation in the Far East is different.

"Now the Shaoxing County Working Group has been stationed and begun to liquidate the business, but bankruptcy is unlikely. After all, many local businesses have mutual insurance. If they fail, they may trigger a chain effect." There are people familiar with the matter.

According to introduction, Far East Petrifaction Not purely private enterprises, Shaoxing County CMC also has a certain share. "The government will tend to introduce new investors. There is rumor in the industry that Rongsheng may buy it. Now the factory is still producing raw materials for digestion, and will stop production after use. " The source said.

Another PTA factory owner said that because shareholders and banks had no intention of continuing to bear long-term losses, Far East Petrochemical would shut down in April. At present, restructuring is more difficult. Under the overall downturn of the industry, it is unlikely that the industry will acquire far East petrochemical.

Earlier, there was a clue in the market. In March 17th, Zheng Shang issued a notice to suspend the Shaoxing Far East petrochemical company. futures PTA free inspection and delivery brand qualification. The reporter telephoned the responsible person of the Far East Petrochemical Company, and the other side did not comment on the above information.

Because the downstream demand performance is low, the domestic PTA capacity in the early stage of rapid expansion is becoming more and more surplus. The process of capacity development has actually started since last year, but the volume of enterprises such as the Far East Petrochemical Company is still in a big psychological impact.

" PTA The industry has suffered large losses for three consecutive years. Before it was shut down by some small factories, no one really declared bankruptcy reorganization. A large PTA business person said. In his view, the industry shuffling process may accelerate, do not rule out the possibility of spreading to traditional leading enterprises.

Guotai Junan Futures analyst Dong Dandan said that since March, the profitability of PTA enterprises has begun to deteriorate. In some periods, the price difference between PTA and PX is only 200 yuan, while large enterprises should have a price difference of 500 yuan / ton to maintain capital.

Dong Dandan said that Far East Petrochemical is a representative of PTA small and medium enterprises. In the background of the continuous decline of PTA prices and the continued strong strength of raw materials in the near future, the small and medium-sized enterprises such as the Far East have suffered serious losses and even faced bankruptcy.