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    PTA Enterprises Should Avoid Vicious Competition And Strive To Achieve Win-Win Cooperation.

    2016/10/13 21:58:00 40

    PTAVicious CompetitionRaw Material Market

    China's PTA industry has already formed a highly competitive market environment and diversified market participants.

    Unlike petroleum refining, ethylene, aromatics and other petrochemical industries, China's PTA industry does not have a nationwide industrial development plan.

    PTA market participants from their own perspective to observe and understand the Chinese PTA industry, enterprises, governments, financial institutions and other aspects of the lack of overall understanding of the PTA industry situation.

    China

    PTA

    "China has now been pformed from the largest PTA (pure terephthalic acid) importing country to a net exporter", but facing the international competition, the export path is not smooth, and domestic overcapacity is "pressure mountain".

    In order to better promote the healthy development of China's PTA industry, the Planning Institute of petroleum and chemical industry organized the research and Prospect of the development of China's PTA industry, and was held in September 23rd to resolve the problem.

    Excess production capacity

    "China's PTA industry development research and Outlook" report conference was released to ease the industry's difficulties and guide win-win cooperation.

    According to the research report, China's PTA technology has made rapid progress since the beginning of the new century, and its supply capability has been greatly improved, and import substitution and self-sufficiency have been achieved.

    However, the rapid outbreak of capacity has resulted in overcapacity, intensified market competition, and rapid decline in the profitability of the industry.

    In the long time ahead (before 2020), China's PTA industry will still maintain a situation of oversupply, and the profit situation is not optimistic.

    The report considers that the technological level, location conditions and upstream and downstream correlation are the important factors that affect the competitiveness of PTA enterprises.

    Because of the market and competitiveness, there is a lot of idle production capacity in China's PTA industry, which not only increases the burden on enterprises, but also wastes social resources.

    According to statistics, China's PTA production capacity increased from 3 million tons per year in 2000 to over 50 million tons / year in 2016.

    The polyester industry in the lower reaches has slowed down, the support for PTA demand has weakened, and the demand for PTA has been sluggish.

    PX

    Capacity growth is blocked, long-term supply is insufficient, PX prices remain strong, and the proportion of raw materials in PTA production costs continues to rise.

    The overall profitability of PTA industry has declined rapidly.

    Since 2013, China's PTA industry has been running for a long time in a small profit or even a negative profit range.

    Since 2014, China's PTA industry has seen a large number of production capacity shutting down and limiting production, and the other half of the new plant has been put into production continuously.

    According to incomplete statistics, in June 2016, China's PTA industry shutting down PTA production capacity exceeded 14 million tons / year, exceeding the total capacity of PTA 1/3.

    On the one hand, due to the increasingly prominent overcapacity, in the fierce competition in the market, some of the poor market competitiveness of the PTA device is overburdened, and is in a long-term shutdown.

    Due to the lack of a perfect market exit mechanism, the PTA device in a closed state is "dead but not stiff" and can not achieve capacity upgrading.

    On the other hand, PTA industry participants continue to launch large PTA projects with the support of local governments and financial institutions for the purpose of industry integration, enhancing competitiveness and occupying market share, resulting in further overcapacity of PTA industry.


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