Polyester Giant: Expand Up Desperately!

On July 28, the phase II project of xinfengming PTA was successfully completed. Chairman Zhuang kuilong and President Zhuang Yaozhong of the group visited the site to check and accept the interim delivery of PTA phase II project. As early as 100 days ago - April 20, the construction site of the project held a swearing meeting to fight for the sprint of CCCC 728.

After the completion of the interim delivery of the project, the commissioning of the project will start from now on, and it is planned to put into production at the end of the third quarter. At that time, the company's PTA production capacity will reach 5 million tons. PTA will be fully self supplied, which will provide reliable raw material guarantee for the subsequent spinning, enhance the enterprise's anti risk ability and comprehensive strength, and hand in a perfect answer sheet for the smooth ending of "a new Fengming in three years" and the successful realization of "two 5 million tons".

It is understood that the total investment of Dushan energy and new materials integration project is more than 13 billion yuan. It adopts international advanced technology, configures automation and intelligent facilities, creates a digital management system, and achieves the international first-class level of material consumption, energy consumption and emission, and further moves towards green, low-carbon, intelligent and digital. After the completion of the project, the production capacity of 9 million tons of PTA and 2.1 million tons of functional fiber will be formed in Dushan base. The annual sales volume is expected to reach 60 billion yuan, and the profits and taxes will reach 6 billion yuan. It will become the pillar industry of Dushan Port Economic Development zone.

Xinfengming is expected to become the new PTA three giants

PTA and ethylene glycol are the main raw materials of polyester fiber, accounting for about 85% of the production cost of polyester filament. For many years, the control of raw materials has been a headache for chemical fiber enterprises. Only by extending the industrial chain upstream and realizing integrated production, can we highlight the advantages to the greatest extent and realize the maximization of profits.

It is understood that the main products of xinfengming are POY, with an average sales volume of more than 75% in the past five years. In 2018, due to the lack of integration of its own industrial chain, the PTA price in the market rose sharply, and the cost of raw material procurement increased, resulting in the company's POY gross margin falling to 10.45%.

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In order to improve the degree of industrial integration and anti risk ability of the company, xinfengming invested 4.4 million tons PTA project in Dushan Port Economic Development Zone, Pinghu City, Zhejiang Province in 2018. The project is planned to be constructed in two phases, with a scale of 2.2 million tons / year and a total investment of 7 billion yuan. This increase will help the company to improve the integrated layout of the industrial chain, further enhance the scale advantage, improve the overall competitive strength, and consolidate and enhance the position of the industry. At present, PTA phase II project is advancing orderly and is expected to be put into operation by the end of 2020. By then, Fengming is expected to reach the new PTA capacity of 5 million tons.

Polyester giant: expand up desperately!

Since 2010, a large number of domestic private chemical fiber enterprises have built PTA and polyester plants, leading the scale of production capacity, expanding market share, advanced technology and efficient operation. Hengli, Tongkun, Rongsheng and Hengyi Petrochemical have become the four listed private chemical fiber giants in China. According to the statistics, the new production capacity of hengkun and Tongli will reach about 9.2 million tons by 2025, accounting for about 40 million tons of domestic production capacity.

In contrast, most of the other PTA manufacturers are state-owned PTA factories and small private factories under Sinopec. The PTA production units of these factories are put into operation early, the technology is relatively backward, the production cost is high and the competitiveness is weak, so they are facing the fate of being eliminated in the market.

Since the decentralization of PX approval authority, in recent years, Rongsheng, Hengyi, Hengli, Tongkun and other leading chemical fiber enterprises have made great efforts to extend the industrial chain to the upstream, integrating the whole production process of crude oil px-pta-pet-textile from top to bottom.

Rongsheng petrochemical, as the industry leader, owns Sinopec with an annual output of 2 million tons of aromatics, accounting for 11.5% of the total aromatics production capacity in China; Hengli Group's 20 million tons / year refining and chemical integration project in Changxing Island of Dalian has been put into operation; Hengyi Petrochemical Brunei PMB petrochemical project realized the full process opening and full production on November 3 last year, with the project of 8 million tons/ It has a crude oil processing capacity of 1.5 million tons / year and a p-xylene production capacity of 1.5 million tons / year. After the completion of the refining and chemical integration project of Zhejiang Petrochemical Co., Ltd., a joint venture between Rongsheng holdings and Tongkun group, it will have the capacity and scale of 40 million tons / year oil refining, 8 million tons / year of paraxylene and 2.8 million tons / year of ethylene. At present, the first phase of the project has been put into full operation. Shenghong refining and chemical integration project is also stepping up, and will form 16 The production capacity of 1.1 million tons / year ethylene, 2.8 million tons / year of refining, 2.8 million tons / year of PX, 1.1 million tons / year of ethylene production capacity. Xinfengming group's "fourteenth five year plan" goal is to achieve 10 million tons of PTA production capacity, 10 million tons of polyester production capacity and 100 billion yuan of revenue.

The upstream and downstream integration process of each sub domain leader is very important to the future chemical fiber industry pattern. The enterprises that take the lead in completing the upstream expansion will have the first mover advantage in the competition, especially to earn the excess earnings of the insufficient competition in the large refining and chemical sector. In order to reduce the dependence of raw materials on foreign countries and realize the profit retention of the whole industry of "crude oil PX PTA polyester", we will enhance our ability to resist risk impact.

Price cut, profit call, latent excess capacity has been awakened!

In this period, polyester industry will continue to expand its scale and become the focus of the industry. At the same time, in the first half of 2020, the domestic PTA price returned to 5000 yuan / ton, nearly cut back from the 9200 yuan / ton in September 2018. For more than a year, the industry has continued to prosper. The rise is due to the PX industry's capacity exit. Five years of industry downturn has made 25% of domestic PX industry capacity out of operation. But PTA price did not stop after a short run, but quickly callback. Under the call of profit, the latent excess capacity has been awakened, and the competition will become white hot when there is no breakthrough in the export market in the short term.