Polyester Industry Chain Is Fluctuating Now! What Can Enterprises Do To Avoid Risks When Trade Is Avoided?

In the near future, the US imposed a tariff of 200 billion US dollars on China's exports to the US, and China quickly made counter measures.

In the field of chemical fiber, Chemical fiber filament and fabric, chemical fiber staple and fabric are added duty. This has affected the polyester industry chain to a certain extent, so that the price of crude oil and related polyester bulk commodities fluctuated to a certain extent.

PX prices drop again and again.

First is Let the past "profit king" PX prices fall. In fact, since March Constant force After the PX plant was put into operation, the days were hard. After entering the middle of May, the price of PX dropped again. In May 13th, the price of PX outer market (FOB Korea) was also reduced. 888 U.S. dollars / ton In May 14th, it became $874 / ton, compared with $845 / ton in May 15th.

PTA large fluctuations

The spot price of PTA, which was originally "stable", fluctuated. On the first 3 days of the third week of May, PTA futures closed down, with the main 1909 contracts falling 2.2%, 4.4% and 1.62% respectively for 3 consecutive days. The 1907 contract on the 14 day is the intraday limit, the 15 day's decline is still larger, the final plunge 4.2%, the single day fell nearly 500 yuan / ton. But in May 16th, PTA futures began to rebound.

Polyester restarting downstream channel

As the downstream of polyester industry chain, polyester filament has not been spared. Since mid April, the price of polyester filament has been falling, falling by nearly 1000 yuan, due to poor production and marketing and large inventory.

In early May, the polyester plant launched a wave of price promotions, a good inventory of inventory, coupled with some polyester factories began to stop production maintenance, production capacity has dropped a lot.

Although the downturn in the terminal weaving Market is the most fundamental reason for the overall downturn in the polyester industry, industry insiders say that As a result of the fluctuation of the polyester industry chain, the recent Sino US trade friction which is suddenly aggravated is also the most direct fire. Cable.

Polyester products involve filament and staple fibers in chemical fibers. According to the volume of China's exports in 2018, 1 million 30 thousand tons of direct spun polyester and short exports and 2 million 270 thousand tons of polyester exports, of which, The polyester and short staple exported to the United States is roughly 40 thousand tons, and the polyester filament is approximately 70 thousand tons, totaling 110 thousand tons.

In addition to the direct export of polyester raw materials, In 2018, exports of textiles and clothing totaled US $276 billion 700 million, of which US $45 billion was exported to the United States. The tax increase included in the list is about 10 billion dollars, accounting for 3.6%. According to the 2018 polyester production of 34 million 500 thousand tons, of which, downstream textile and clothing have 20% exports. And 3.6% of exports to the United States, the demand for converted polyester is expected to be around 250 thousand tons.

Compared with the absolute volume of 45 million tons of polyester in China, this data is not big, but it has played a driving role.

In addition, a number of chemical raw materials and accessories are also being added to the tariff. Among them, 47020000 dissolved grade chemical wood pulp and 29269090 other nitrile compounds (adiponitrile under this tax item) maintain a 5% tariff rate, which has a certain effect on the regenerated cellulose fiber industry and the nylon 66 industry.

Improve competitiveness and seek new market

At the beginning of this year, Duan Xiaoping, vice president of China Textile Industry Federation and President of China Chemical Fiber Industry Association In an interview with reporters, he talked about the issue of dealing with Sino US trade frictions. He said, Although Sino US trade friction has a direct impact on the chemical fiber industry, it can not be ignored. One side, Enterprises should strive to improve their competitiveness. On the other hand, We should actively seek new alternative markets.

China's labor costs and the cost of raw materials have been rising, which has lost the traditional cost advantage. Therefore, we must speed up the promotion of intelligent manufacturing to reduce production costs. At the same time, we must increase our independent innovation, follow the "three products strategy" of the state, and improve the core competitiveness of our products, so that products can not be replaced, so that the United States will not choose other countries' substitutes for tariffs.

In fact, with the rising cost in recent two years and the impact of the textile industry in Southeast Asian countries, the traditional "win by price" has begun to become inappropriate.

At the 125th Canton Fair, which ended in May 5th this year, The turnover of textiles and garments was 1 billion 620 million dollars. An increase of US $200 million over the same period. At the same time, the quality characteristics begin to appear. Data show that 20% of the brand exhibition area reached 28.8% of the total turnover, and new purchasers accounted for 42.15% of the total number of buyers.

As a barometer of foreign trade, the new features of the Canton fair show China's textile exports are moving from "win the price" to "win by quality".

In addition, Enterprises should strengthen trade cooperation with ASEAN, EU and central and South American countries, especially the countries along the belt and road, reduce their dependence on the US market, and actively seek new alternative markets and enhance their ability to resist risks. Powerful enterprises can consider the layout of overseas markets to avoid trade barriers.

With the increasing cost of domestic personnel and equipment, some enterprises have shifted production facilities from China to Southeast Asia and other countries in order to reduce production costs. Last year's Sino US trade friction also accelerated the process.

Although there are a series of problems in Southeast Asian countries, such as industry matching, personnel quality and cultural environment, their low labor cost is enough to offset most of their disadvantages.

It is understood that many textile export orders to Southeast Asia, in fact, terminal customers are still in the European and American markets; some European and American customers will require companies to send products directly to the garment factories they built in Southeast Asia. This time, the trade war between China and the United States is intensifying again, or some hesitant investors will be determined to make the Southeast Asian countries take advantage of the "fishing profits".