Can PTA Leading Enterprises Lead The Industry Out Of The Trough?

As the largest producer and consumer of PTA in the world, China's right to speak in the international market is gradually increasing.

The most obvious is that in recent years, due to the loss of PTA enterprises in South Korea and other places under the pressure of loss, the external market supply in China's market is almost completely replaced by the new domestic output.

According to Xu Tingting, analyst at CCF, in 2015, the total import of PTA (including QTA) in China was only around 700 thousand tons, and the dependence of domestic PTA imports further declined.

Looking back at the past PTA's reduction in production price, every time it can only stabilize the market for a short time. The failure reflects the lack of a strong alliance in the industry, and Yisheng Petrochemical can only be "big and powerless".

In some industry circles, the PTA industry can not expect Yisheng Petrochemical to be the "savior". The solution can only be the collective going out of the enterprise, the excess capacity to be exported to the outside world, or the waiting time to survive the fittest.

"The change of domestic PTA market accelerates the whole world.

The survival of the fittest of the industry.

Xu Tingting said that for domestic manufacturers, based on the competitive advantage of production, to keep their share of the market, it is necessary to squeeze the goods from South Korea and other sources without cost and geographical advantages to the domestic market.

Not only that, in the negotiations with raw material PX supplier ACP (Asian contract price), this year, Chinese enterprises also showed strong self-confidence and sufficient bottom spirit.

"Before 2013, PX was a typical seller's market.

Since 2014, due to the continuous commissioning of new PX installations in Asia, the shortage of PX has gradually decreased. In addition, the scale of China's PTA industry has been constantly concentrated, the buyer's voice has been gradually enhanced, and the profits of PX have been declining, and the status of buyers and sellers has been more equal.

Qi Mingzhi said.

It is undeniable that Yisheng Petrochemical's "giant effect" in the industry is obvious and deserved.

"For the PTA industry, we need the strength of leading enterprises to unite the whole industry."

Xiang Lu Petrochemical related personnel admitted that Yisheng Petrochemical has the responsibility of "big brother" in the industry. After the accident of Xiang Lu, he actively produced PTA to assist Xiang Lu to make contract goods. From this point of view, solidarity allowed the market to see hope in adversity.

"We expect Yisheng Petrochemical's exploration to drive the development of PTA industry in China, and no longer compete against each other when competing with foreign PTA factories.

Also hope that when downstream polyester enterprises are in trouble, Yisheng Petrochemical also gives more tilt and support.

The personnel said.

At present, the PTA industry has entered the post overcapacity period, eliminating backward production capacity, integrating industry resources and optimizing allocation to enter the crucial stage.

For PTA production enterprises, it is urgent to exert their scale advantages and use financial instruments to enhance the vitality of business operations, so that enterprises can develop steadily in the market competition.

The demonstration effect of Yisheng Petrochemical is able to play an active role in the market.

"On the one hand, the business scope extends to the upstream of the industrial chain to maintain the low cost advantage of the enterprise, and then,

On the other hand, we should flexibly use futures tools to hedge and spot price pactions, avoid the risk of price fluctuation and reduce the pressure of business operation.

Wei Lin, an analyst with Fu Neng futures, said that through the leading effect of Yisheng petrochemical, China's PTA enterprises can get out of the low development period of the industry and lay a solid foundation for Chinese enterprises to gain pricing power in the international market and promote the internationalization of PTA futures.

It is worth noting that in the market, Yisheng Petrochemical has certain expectations, while some market participants have raised some doubts.

In the background of the industry's deep mire and economic growth decline, "can't you arm your thighs"? Can a single company recover its decline?

In October last year, it began to buy in the spot market to stabilize spot prices. But in the early December, crude oil fell below 40 US dollars / barrel and opened a new round of decline. Yisheng Petrochemical voluntarily gave up its pricing strategy.

Although Yisheng Petrochemical has a large market share in the country, under the background of industry surplus, it is difficult to form a combined force of heating and keeping watch with other PTA production enterprises belonging to the same "difficult fellow".

In addition, the systemic risk of crude oil prices is not controlled by Yisheng. The pricing power of PX is also external. The efforts made by Yisheng Petrochemical will only support the market in the short term.

Yuan Li futures analyst only Yali said.