CCTV Reported: Hengli Refining And Chemical Integration Project Is Coming Into Full Operation.

In May 11th, CCTV news channel "news live" column, special report on Hengli refining and chemical integration project put into operation.

Details of the news live room:

I am now in the joint operation center of Hengli Petrochemical Industrial Park in Changxing Island Economic Zone, Dalian. Through the big screen, we can see the panoramic view of Hengli 20 million ton / year refining and chemical integration project. This large scale installation group with an area of 15 square kilometers is the largest scale petrochemical integration project in China.

Today, this project ushered in a moment when it was fully put into production.

Refining capacity, ethylene production and aromatics production are important indicators to measure the level of a country's chemical industry.

This also marks Hengli shares leading the same industry, taking the lead in realizing the substantive operation of the whole industry chain business from "one drop of oil" to "one thread", and entering a new stage of synergy, integration and balanced development of refining, petrochemical and polyester industries.

It is understood that the PX capacity of the project is 4 million 500 thousand tons. PX is the source of the polyester industry chain, and also the tail of the aromatics industry chain. As the role of the central hub, the operation of the upstream and downstream markets is involved in PX, and the increase of Hengli NEW device has a huge impact on PX's own supply and downstream polyester raw materials.

1, from the perspective of PX's own supply.

恒力石化位于大連的煉化一體化項目包含PX產能450萬噸/年，2019年3月24日產出合格產品，該裝置有兩條PX生產線，目前先投放一套225萬噸/年PX生產線，盡管先投產一半產能，不過目前已然成為國內最大的PX生產企業，占國內總產能的16.03%，國內供應量開始大幅提升，恒力石化本身就有660萬噸/年PTA裝置，其最初PX產能設計也是正好滿足自身PTA生產所需，生產出來的PX直接通過管道進入臨近的PTA工廠，而該企業之前PX原料少量通過本地PX企業采購，大部分通過進口所得，因此PX進口量將大幅減少，后期第二條PX生產線投產只是時間問題，恒力石化未來基本能夠實現0外采，由于PX進口減少，而日韓、印度等PX出口大國面臨壓力，PX利潤較高是常態，因此國外企業讓利可能性較大，供應給需要進口PX的國內其他企業。

Hengli petrochemical PX production is only a beginning. This year, the domestic PX production capacity will reach 8 million 850 thousand tons. If it goes into operation, China's capacity will increase by 63%.

The future trend will be that domestic PX will gradually satisfy self-sufficiency and PX imports will be substantially reduced.

2, from the right to speak.

In addition, the right to speak has also changed. Combined with the PX-PTA- polyester three link production capacity in the past two years, the production of polyester links has increased, and the installation of PTA has not been increased. While the overall output of PTA is limited, so the PTA discourse is expected to increase.

With the production of PX in China, the bargaining power of the PX link will be gradually reduced.

3, from the profit distribution of industrial chain

Considering PX-PTA- polyester tricyclic, impact from the new plant put into operation, PX profit has a larger compression space. At present, PX price is weak and profits are pferred to PTA, but polyester link profit has been withheld. At present, the profit distribution of industrial chain is unreasonable. The average processing error of PTA in the future is expected to continue to be repaired in the upper and lower reaches of the industry chain.

According to statistics, from April to early May, PX fell by 148.3 US dollars / ton, or 14.4%, and the theoretical production profit dropped from US $+149.1 / ton in April 1st to US $-4.1 / ton in May 6th, and the profit of theoretical production dropped by US $153.2 / ton, turning from profiteering to a slight loss in production.

The last production loss was in the early July 2018, and it was 10 months since the last production loss.

PTA industry chain profit concentrated in PTA position, in the early May, PTA theory daily profit was around 1295 yuan / ton, raw material end PX price shock moved down, but PTA prices remained strong in the mainstream factory buy back market situation, resulting in rising processing fees.

Recently, the PTA plant continues to repurchase PTA spot, and the PTA spot price is strong, ignoring the upstream PX drop and the lower polyester price promotion.

It is speculated that before the delivery of futures TA1905, PTA big factory will continue to buy PTA spot market, PTA price is strong and maintain high profits.

Later, in the early May, the production profit of polyester staple fiber was limited, the polyester filament POY fell to the cost line, the terminal textile market was not flourishing, and the inventory of grey fabric was high. Some polyester factories began to release the news of planned maintenance or production reduction.