Chemical Fiber Industry: Greater Pressure On New Capacity

With the increase of export of chemical fiber products, the trade friction of chemical fiber industry is aggravated, and anti-dumping cases are frequent.

Since 2015, there have been 8 anti-dumping investigations or sunset review cases initiated by other countries in China's chemical fiber products, and 1 cases of anti-dumping investigations by other countries have been launched in China.

China's chemical fiber industry should further standardize the import and export market order. Enterprises should strive to improve the added value and competitiveness of export products, avoid relying solely on price competition, and also apply policies and laws to support the domestic chemical fiber market.

Credit sales and receivables that have plagued the industry for many years have been an issue.

A chronic disease of healthy development.

8 leading enterprises in 2014 sales of 16 billion yuan, of which 3 billion yuan owed, accounting for 18.75% of sales.

Large amounts of receivables cause nylon enterprises to increase bank liabilities and financial costs, and increase the business risk of enterprises.

In the first half of this year, the China Chemical Fiber Association issued a letter of recommendation to the nylon enterprises and sent an open letter to downstream users, calling for the clean-up of arrears and jointly maintaining the healthy operation of the nylon industry chain.

In 2015, the pressure of new production capacity of chemical fiber was still relatively large, but the pace of investment slowed down compared with the previous two years.

Preliminary statistics show that in 2015, the production capacity of the polyester project increased by about 3 million 600 thousand tons. In the first half of this year, 1 million 930 thousand tons were put into operation, most of which were put into operation in March, and only two sets of 250 thousand tons of equipment were put into operation in the two quarter.

The rest of the projects will be adjusted according to market conditions, and some projects may be delayed.

Crude oil prices in the first quarter of this year have been consolidated after the sharp decline last year. The supply and demand relationship has improved in April, and the overall trend is relatively strong.

In 5 and June, the 60 dollar and 1 barrels were sold on the whole, and began to fall rapidly in late June, which is now close to 50 US dollars / barrel.

The uncertainty of oil market causes oil prices to rise and fall and fluctuate frequently.

Because of the sluggish crude oil prices, polyester polyester products, which are downstream products of petrochemical industry, are also running at a low price. The prices of recycled chemical fiber products are suppressed by native products, but the price of bottles has not fallen synchronously, thus reducing the profit margins of recycled fibers.

The whole industry loss of regenerated fiber in June is unchanged.

And under the premise of combating illegal raw materials processing, it is expected to continue to lose money.

The regenerated fiber industry needs to be further standardized, and consumers should also change the consumption concept of recycled fiber.

In the second half of the year, at home and abroad

Pressure is still high, and the global economy is expected to remain weak.

The domestic economy has been gradually effective with a series of steady growth policies, and GDP is expected to grow by 7% over the whole year.

The textile industry is expected to maintain steady growth, and industry growth can basically remain in the first half of the year.

From the perspective of raw materials, crude oil supply is adequate, oil prices are low, and PTA capacity growth is slowing down. It is estimated that two new devices will be put into operation at the end of this year, which will not have much impact on this year's market.

Another PX cost support, PTA price exploration space is limited.