Chemical Fiber Industry: Bankruptcy Of Industry Leading Enterprises

The PTA industry chain became worse after July 8th.

On the same day, commodity futures fell completely, and PTA futures suffered a drop in price. The price of the whole industry chain also dropped sharply, and the market was worried.

Subsequently, PTA factory production losses more serious, as of July 29th, PTA manufacturers average loss of 327 yuan per ton.

The same loss situation makes the market unable to help but think of the limited production and price protection Alliance launched by industry giants last year.

In July 21st, a message of "farewell to the Far East" was rapidly circulated in the market. Many employees of Shaoxing Far East Petrochemical Co., Ltd. (hereinafter referred to as far East petrochemical) wrote sentimental farewells on their personal social platforms.

The message shows that the Far East Petrochemical announced that the company had ceased production because of its operational difficulties and applied for bankruptcy and liquidation to the court.

On the same day, the Cmi Holdings Ltd also issued a notice on the application for bankruptcy and liquidation of the Far East petrochemical company.

Far East Petrochemical official website shows that Far East Petrochemical is a comprehensive large conglomerate which integrates polyester, polyester spinning, polyester staple fiber, cartridge, printing and dyeing.

As one of the five largest PTA production enterprises in China, the Far East petrochemical company has 4 sets of PTA production units, totaling 3 million 200 thousand tons of capacity, and the company's annual aggregate capacity is 800 thousand tons.

Such an industry tycoon who has a certain share of the global market has collapsed, and it should be mentioned a few years ago.

Since the beginning of 2012, due to overheated investment in domestic PTA industry, the capacity of chemical fiber industry is seriously overabundant.

In a short year, the industry has shifted from a seller's market to a buyer's market, and the price of products has gone down sharply, and the industry efficiency has generally declined.

"Looking at the development of the PTA industry in China, it can be said that the bankruptcy of the Far East is the result of the natural deduction of the life cycle of the industry under the market mechanism by the superposition of the macro economic cycle."

Jinyou futures analyst Wei Lin told futures Daily reporters that from 2009 to 2011, China's macroeconomic policy was under the control of economic prosperity, and also the golden age of PTA industry development.

In the meantime, the PTA price is soaring, and the spot price is up to 11800 yuan / ton, and the profit of the enterprise has reached 3500 yuan / ton.

"In

Driven by the strong demand of the market, the PTA industry started a rapid expansion process.

From 2009 to 2014, the average annual growth rate of production capacity reached 24.7%, much higher than that of the downstream polyester link. 10.2%.

With the pformation of supply and demand pattern, coupled with the slowdown in global economic growth in recent years, the PTA industry has gradually entered a recession. Overcapacity and production losses have become normal.

Wei Lin said that the collapse of the Far East petrochemical company reflected the current situation.

The industry is in deep trouble. On the other hand, it marks the acceleration of the reshuffling process of the industry's survival of the fittest.

From a certain angle, this is also a positive signal. The bankruptcy of the leading enterprises in the industry has sounded the alarm for the existing enterprises.

"From the industrial level, we must follow

To control the overall production scale within a certain range, any blind expansion of reckless consequences will only aggravate the market environment. From the enterprise level, the development of scale advantage, elimination of inefficient, energy intensive and backward devices, compression production costs and enhancing their comprehensive competitiveness has become a top priority for PTA enterprises to maintain their survival.

Wei Linru said.