Big Mac Oil Companies Apply For Bankruptcy Protection! Polyester Market Was "Hit The Nail On The Head" Again!

According to the foreign media financial times in April 18th, Singapore's largest oil trader, Hin Leong Trading, and its creditors failed to reach an agreement on the company's $3 billion 850 million debt. On Friday, they filed for bankruptcy protection in accordance with the Singapore company act 211st (B).

It is reported that Xing Long Group owes a total of 23 banks 3 billion 850 million US dollars, of which HSBC has the largest exposure of 600 million dollars, followed by ABN Amro (Holland's Bank) 300 million, DBS group, overseas Chinese bank and Dahua bank three Singapore banks' exposure to 680 million US dollars.

Apart from Hin Leong Trading, Xing Long Group also includes Ocean Tankers, one of the largest shipowners in the world, Ocean Bunkering Services Pte Ltd (OBS) - one of the three largest marine fuel suppliers in Singapore.

Since the end of the 1980s, the group has been recognized as one of the major oil traders in the international oil trade arena. In addition to the oil giant, the group was awarded the global dealer project (formerly chartered oil dealer) qualification certificate by Singapore International Business Administration, the only two local companies holding the qualification certificate.

Lin Enqiang, chairman of Singapore Xing Long group, is known as the Singapore Fuel king. There is a saying among Asian fuel traders that if we want to buy fuel oil in Singapore, if Lin Qiang doesn't nod "OK", even if you have more money, it will not help.

Apart from oil trade, Xing Long Group has strong strength in port storage, fuel oil supply, lubricating oil and grease production, Singapore Island transport service, diesel retail and marine logistics support. Group marine fuel supply Co., Ltd. has been operating from offshore barges to 130 large tankers carrying 318 thousand tons, ranking 16 in the world's tanker operators.

However, such a giant oil company encountered unprecedented oil slump...... ..

　　 When a large commodity trader or a manufacturing company has come out with information about bank loans, liquidity tightening and company layoffs, the first problem for old traders is: how much stock do they have on their hands?

Of course, this is a business secret. We can see that in January 1, 2020, IMO began to implement the sulfur limit order, and the global sulphur content limit of ships from the previous 3.5% to 0.5%. In response to this regulation, many markets have been stockpiling low sulfur fuels and distillate. And all this happened just before the oil slump.

May is still the test period of oil price.

With the decline of demand, the adjustment level of crude oil balance sheets by various agencies is also rare. We take the most typical EIA crude oil balance sheet as an example, and the sharp decline in aggregate demand compresses the chart's axes. The scarcity of demand makes the oversupply of the whole phenomenon extremely serious.

EIA predicts that the global crude oil surplus will be 9 million 630 thousand barrels per day in March, the surplus in April will be 15 million 440 thousand barrels per day, and the surplus in May will be 12 million 520 thousand barrels per day. Overall, the 4 and May crude oil market will still face greater pressure. At the same time, EIA data show that global demand for crude oil will be low in April, recovered in May, and basically recovered in June. By the three quarter, the crude oil market will have a tight supply and demand pattern in the dual role of demand recovery and supply contraction.

On the return of oil prices, the repeated stimulus of various negative factors has made the crude oil price overburdened, but fortunately the negative factors are more important in the first line contracts, and the pressure on the far moon price is not obvious. From the demand side, the worst case is already the case, and the follow-up needs to focus on the epidemic situation and demand changes in India. At the supply level, whether the voluntary reduction or involuntary production reduction, the current crude oil price level, the decline in crude oil production is inevitable.

　　 Crude oil slump, polyester industry pressure again

Crude oil industry personnel revealed that crude oil will continue to innovate bottom - deep bottomless? Maybe the US crude oil has fallen below the unprecedented level. Below US $10 / barrel, a liter of oil will cost 100 liters for 10 US dollars / barrel. What does it mean? An Evian brand of drinking water 750ml is not only 10 dollars! In contrast to history, the price of WTI and polyester filament has seen two low points since the financial crisis. The first is in early 2009, and the second is in early 2016. In early 2016, WTI closed at the lowest level to 26 dollars / barrel, and the average length of polyester filament POY150/48 was 5900 yuan / ton on that day.

If we refer to the level of oil prices in 2016, the future price of polyester filament POY150/48 will break 6000 points. In addition, the current situation is different from that in 2016. In 2016, the industry chain is not all of the links, and the PTA/PX/MEG processing is still poor. For example, the processing fee of PTA is still 600-700/ tons, and the processing difference of PX is still 400 dollars / ton. The difference is far from the past. In the past time, the PTA processing error has been maintained at 300-400 yuan / ton, while PX is also 250 yuan / ton.

From the cost point of view, polyester filament still has 1000 yuan to fall, but the concentration of polyester filament industry is far higher than that of 2016, and the price negotiation ability of the polyester factory has greatly improved, so maybe POY150/48 can support 5500 yuan / ton or above. Even so, the devaluation of pet factories is a fact.