Another Batch Of Polyester Yarn Project Has Been Signed And Put Into Production. Polyester Faucets Grow Bigger And Stronger, And Who Will Be Eaten First?

At present, the domestic polyester industry chain is in the stage of expansion and integration, especially in the large scale polyester enterprises, such as Tong Kun, Rong Sheng, Heng Li, Heng Yi, Sheng Hong, San Fang Xiang and Xin Feng Ming, are still constantly adding or purchasing polyester production capacity, and extending their own industrial chain to the upstream raw material industry. With the upgrading of the industry concentration, the leading enterprises of the chemical fiber that occupy the head resources will undoubtedly have more advantages. This is the reshuffle period of the chemical fiber industry. It is also a painful road for industrial transformation and upgrading. It is also the life and death of small and medium-sized chemical fiber enterprises.

The total investment is 11 billion! New Feng Ming company's annual production of 3 million tons polyester project contract

On the morning of June 8th, Tongxiang's two quarter major projects focused on signing contracts and concentrating on completion activities were held in Tongxiang. New Feng Ming company's annual output of 2 million tons of functional flexible customized short fiber new materials and 1 million tons of functional differential fiber project participated in the signing of the contract.

On the same day, the new Feng Ming Group announced that the wholly-owned subsidiary of Tongxiang Zhongyou Chemical Fiber Co., Ltd. (hereinafter referred to as "Zhongyou chemical fiber") plans to invest in building new materials projects with its own funds or self financing funds, with a construction area of about 1400 mu. The project is located on the north side of Hangzhou Avenue, Tongxiang City Industrial Development Zone, with an investment of about 11 billion yuan, of which: 2 million tons per year, differential direct spinning. The total investment of PET staple fiber is 6 billion 550 million yuan, the total investment of 1 million tons of functional differential fiber is 3 billion yuan, the total investment of 300 thousand tons of polyester film and other supporting new materials is 1 billion 450 million yuan, and the construction period of the project is expected to be 60 months.

New Feng Ming said that with the continuous improvement of the company's overall capacity, according to "one continent, two lakes" layout requirements, the company Zhou Quan base capacity exceeded 2 million 900 thousand tons. In order to further expand the Chau spring area, strengthen Chau spring industrial clusters and production forces, further enhance the company's profitability and improve the industrial chain structure, the company plans the investment. After the completion of the project, it will help improve the industrial chain structure, further enhance the company's profitability, and consolidate and enhance the industry status.

Insiders said that according to the current capacity planning, it is expected that in 2021, the new Feng Ming industry will jump into second of the industry with 5 million 800 thousand tons of filament production capacity, accounting for 13% of the total industry, showing a trend of strong and constant strength. In addition, new Feng Ming is building a total of 4 million 400 thousand tons of PTA capacity in two phases. After commissioning, it will achieve self-sufficiency of raw materials, enhance company competitiveness and enterprises' ability to resist risks.

Hengyi subsidiary 500 thousand tons of differentiated FDY transformation project put into operation

On the evening of June 3rd, Hengyi Formosa Petrochemical Co announced that the annual output of 500 thousand tons of differential functional fiber upgrading project, which was built by the company's Jiaxing yypeng Chemical Fiber Co., Ltd. (hereinafter referred to as "Jiaxing Yi Peng") (hereinafter referred to as "project"), has been completed and formally put into operation recently, and a total of 500 thousand tons / year differentiated functional FDY has been set up.

Accordingly, Jiaxing Yi Peng has a total annual output of 750 thousand tons of differentiated functional quality FDY production and operation capacity. In the first stage of the project, the 250 thousand tons / year differentiated functional product FDY was put into operation in April 2019.

It is understood that the project uses Jiaxing Yuping's existing land to invest in the new polyester plant and FDY spinning equipment, and upgrade and upgrade the original part of the polymerization and spinning equipment. Flexible polymerization technology, polyester melt direct spinning technology and advanced intelligent manufacturing technology and equipment are used to realize the optimization and upgrading of production technology and product quality.

Domestic polyester "low concentration oligopoly": the leader has the ability to expand production, and small businesses continue to transfer market share.

In the upstream of the textile industry chain, the concentration of chemical fiber leading enterprises is gradually strengthening, and their influence on the entire industrial chain is also growing. Nearly five years of market share and nearly two years of new production capacity of polyester filament industry almost all come from these leading industries.

In the past two years, the polyester filament industry has increased 7 million 770 thousand tons of capacity. Only the top five producers of the industry contributed 6 million 400 thousand tons of capacity increment.

　　 Production pattern of polyester fiber in China in 2020

Affected by the fall of international crude oil prices, the price of polyester industry chain has shown a downward trend, but the upstream PTA and MEG prices are significantly higher than those of polyester, and the profits of industrial chain are transferred downstream. The profitability of polyester filament in leading enterprises will increase significantly. Downstream demand side, although the epidemic may affect polyester downstream demand, polyester demand is closely related to the national economy. In the long run, market demand will continue to grow with consumption upgrading, on the other hand, the market share of capacity expansion will gradually increase, and also bring sustained growth to performance.

Oriental Securities researcher Zhao Chen pointed out that the downstream polyester terminal for textile and clothing, although affected by the epidemic, short-term demand has declined, but in the long term, with the increase of residents' income, global consumption will continue to grow. According to historical data, in the past ten years, the production speed of polyester filament in China has increased by about 10%, and in 2019 the capacity has exceeded 40 million tons. The core of this industry competition is the cost of competition. At present, only the leader has the ability to expand production, and small businesses can only continue to share market share. The current epidemic will objectively accelerate the trend of concentration of the industry to the leading companies.

At the same time, the volume of polyester industry is as high as 40 million tons, and its upstream PTA volume is more than 30 million tons, which is basically the largest single product in the chemical industry, and the downstream is partial consumption of textile and apparel, unlike the real estate chain's large single product, the demand is far from the top. At the same time, the industry concentration degree is very low. The market value of the largest listed companies is only about 20000000000. It is a typical large industry and small companies. The newly increased capacity comes from the top three enterprises, and the concentration degree of the industry is irreversible.

　　 At present polyester industry CR10 industry concentration degree increased from 54.2% to 55.2%. According to the division standard of industrial concentration by American economist Bain and Japan's Ministry of industry and commerce, the industrial market structure is roughly divided into two categories: oligopoly type (CR10 > 40%) and competitive type (CR10<40%). Among them, oligopoly was subdivided into high oligopoly (CR10 > 70%) and low concentration oligopoly (40% or less CR10<70%); competition type was subdivided into low concentration competition type (20% CR10<40%) and dispersed competitive type (CR10<20%). At present, China's polyester industry concentration degree can be classified as low concentration and oligopoly by applying this theory.

A high concentration of industries or small to one industry does not mean that market competition is weak. High concentration may coexist with fierce competition, especially in the current international economic form. As far as the polyester filament is concerned, the industry with high concentration and large scale plays a leading role in the market. It promotes the development of the market and maintains the profit level of the industry. To a certain extent, it also benefits the healthy and stable development of the industry. The competition in the polyester market will further intensify in the future. The granularity of the enterprise will be refined and the cost control will be more stringent. Polyester manufacturers will make long and wide industry chains through horizontal or vertical integration. Enterprises with large scale, strong strength and perfect industrial chain will have more voice. So, in the future polyester industry, the brand effect and scale development will be the competition for the market. An important bargaining chip.