The Rise In Crude Oil Prices Is Not The Savior Of PTA Manufacturers.

The future of the chemical fiber industry can only be reduced by allowing some enterprises to go down. Although the incident of Far East Petrochemical is sad, the sacrifice of Far East Petrochemical is not a good thing for the future of the chemical fiber industry. This also means that the chemical fiber industry has begun to save itself, and has not been sitting still.

Finally, I sincerely wish the chemical fiber industry will get better and better.

PTA prices fell sharply, only in four and a half years, from 12400 yuan / ton to the lowest 4380 yuan / ton, the largest decline of 8020 yuan / ton, the price fell 2/3.

With the downward trend of PTA prices, the profits of PTA production enterprises are gradually engulfed, and even a big loss has occurred.

In such a state, PTA production enterprises are relatively limited in coping strategies, and can only passively bear the price drop, and their business goes from bad to worse.

In late July, a shocking news came from the domestic chemical fiber Market: the Far East petrochemical company applied for bankruptcy and liquidation due to its insolvency and inability to repay its due debts.

Although the author does not work in the field of chemical fiber, but also engaged in several years of chemical products research, especially in the beginning of work to study the PTA, PTA has a special feeling, so when we see the fourth domestic PTA production enterprises collapsed, especially the Far East petrochemical employees crying, there is a kind of inexplicable sentimental.

However, we must say that the collapse of Far East Petrochemical is not a good thing for the chemical fiber industry as a whole.

The collapse of Far East is caused by many factors, but the collapse of PTA price is the most important factor.

The main factors that affect the price of PTA can be attributed to cost, supply and demand.

In the light of the tight oil revolution, crude oil prices may remain at the level of US $50 per barrel for a long time.

When crude oil is too busy, don't expect it to save PTA.

Even if the price of crude oil rises, the production cost will also rise. It is uncertain whether the PTA production profit can be raised. The rise of crude oil price is not the "savior" of PTA production enterprises.

In terms of demand, although the US's economic recovery is good, it is China.

Europe and Japan, which are important exporters, are beset by debt crisis and deflation, and the domestic economy is in pition.

In terms of supply,

There is a serious surplus of production capacity and a decline in price elasticity. The effect of small scale reduction on PTA prices is limited. And because of the characteristics of oligopoly in the PTA industry, as long as PTA prices rebounded slightly, the limited production alliance will collapse. Therefore, short-term production restriction can not fundamentally change the pattern of PTA disadvantaged. The only way to change this pattern is to eliminate enterprises with low utilization rate of resources or poor funds, and save enterprises with economies of scale.