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    Polyester Industry, Survival Of The Fittest, Big Shuffle, High Energy Consumption, Low Quality Enterprises Frequent Bankruptcy.

    2016/1/2 16:23:00 54

    Polyester IndustrySurvival Of The FittestBankruptcy

    Polyester polyester industry in 2015 had "storm surging".

    The collapse of the Far East petrochemical company reflects the plight of overcapacity in the PTA industry.

    It is estimated that China's PTA capacity is over 15 million tons.

    PTA competition between enterprises is "white hot", and continue to fight the "price war".

    This year, the price of PTA is running at a low level of less than 5000 yuan / ton, which is about 4300 yuan / ton in recent years, and the price is low for many years.

    The continued low price of PTA hurts the profits of enterprises, and the whole industry is deeply in the "mire" of losses.

    What is even worse is that since December, crude oil futures in the United States and London Brent crude oil futures have both fallen below the $40 / barrel mark, and the US crude oil futures contract has fallen to a minimum of 34.53 US dollars / barrel.

    The decline in crude oil prices has exacerbated the plight of the PTA industry.

    In terms of DTY and FDY, the average monthly price of DTY 150D in January this year was 9033 yuan / ton, which dropped to 8051 yuan / ton in November, and the average monthly price of FDY 68D in January was 8664 yuan / ton, and it dropped to 7813/ ton in November.

    Although the profitability of DTY and FDY companies is better than that of POY companies, they are also under pressure.

    Under the downturn, the overall operating rate of the industry is insufficient, for example, the production load rate of polyester filament industry in September was only 69.7%, and in November it was restored to around 74.08%.

    After 2010, China

    Polyester polyester fiber

    The industry has experienced a new round of expansion, and bankruptcy is the product of the current expansion.

    The rapid expansion of the industry "sequelae" highlights the pressure to increase production capacity.

    On the other hand, the downstream textile and clothing market has great pressure on inventory, tight capital chain and continuous downturn in demand.

    In this situation, many polyester enterprises can only lower the price and throw stocks in order to protect cash flow, and polyester polyester prices are generally lower.

    Those companies that have high capital pressure, no superior products and smaller enterprises will not be able to withstand the market test, or stop production or bankruptcy.

    Industry shuffle

    Speed up.

    This is also the deep reason why Zhejiang has been rich in chemical fiber, Longteng chemical fiber and Minghui in recent two years.

    The continued low price of PTA is one of the important factors in the price system of polyester polyester industry.

    In 2015, domestic polyester polyester products prices oscillate downward.

    In terms of POY, prices are mainly in the range of 6000 yuan / ton ~7000 yuan / ton, and the price falls by ~7000 compared with that in 2010.

    Take the POY 150D product as an example, the average price in January this year was 7168 yuan / ton, and dropped to 6473 yuan / ton in November.

    At present, the melt cost of POY itself is about 5700 yuan / ton, and many enterprises are in the margin of profit and loss, even losing money. The overall profitability of POY industry is hard.

    Insiders predict that

    Survival of the fittest

    The characteristics of polyester polyester industry are becoming more and more obvious.

    In the next 1~3 years, some of the equipment is old and annual capacity is between 200 thousand tons ~50 million tons. The enterprises with low product quality, high energy consumption per unit of production, high financing cost or unable to finance, or small and medium-sized polyester enterprises with new products and serious homogenization after 2012 ~2013 will continue to "fall".

    There are two types of enterprises that will survive the fittest: one is the "big guys" type. These enterprises are large in scale, some have the right to product pricing, the overall capital is strong, and the industrial chain is more complete, such as Rongsheng petrochemical, Hengyi petrochemical, Hengli, Sheng Hong and so on, and their market competitiveness is further strengthened. The other is the "specialties and special" type. Although these enterprises belong to small and medium-sized enterprises, they are more advanced in equipment, strong in quality control ability and innovative ability, and the products have certain differentiation characteristics.


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