Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News There are already 8 leading two-million-ton polyester companies in China! High-end winding heads constrain the expansion of polyester yarns, and the industry turning point is expected to arrive early

There are already 8 leading two-million-ton polyester companies in China! High-end winding heads constrain the expansion of polyester yarns, and the industry turning point is expected to arrive early



At the end of December, stimulated by various factors, the raw material market once again experienced a surge, with polyester filament prices continuing to rise recently. Data shows that as of December 25, the …

At the end of December, stimulated by various factors, the raw material market once again experienced a surge, with polyester filament prices continuing to rise recently. Data shows that as of December 25, the prices of DTY, POY, and FDY were 7606/5840/5971 yuan/ton respectively, up 9.69%/10.78%/13.51% respectively from the beginning of the month.

Recently, we learned from raw material manufacturers that many yarn mills’ production plans have been scheduled to 1-2 months later. With international crude oil prices remaining high, , the cost support for bulk textile raw materials is still there, many raw material manufacturers are still tentatively raising prices, and downstream companies still have the intention to replenish supplies. In addition, most downstream weaving companies are still producing at full capacity, so the overall operating rate remains above 80%. Compared with the operating rate of about 60% in the same period last year, the overall production enthusiasm of manufacturers this year is higher.

Therefore, manufacturers purchase raw materials in advance. In addition, driven by the rapid increase in raw materials in the early stage, the demand for stocking downstream gray fabrics and fabrics is advanced. , the order signing of the entire industry chain is also better than the previous period, the industry inventory has declined slightly, and some work has produced inventory in advance to prepare for sales next year, so the demand for raw materials is also better than the same period last year.

On December 28, polyester filament production and sales performed well again. The average production and sales of mainstream manufacturers in Jiangsu and Zhejiang markets were 80%-100%, and some better factories could reach 180%. It can be seen from the recent production and sales charts that in November and December, the downstream procurement of raw materials accelerated significantly, with production and sales exceeding 100 almost every week.

In the short term, cost-side support + supply contraction + low inventory are expected to support the continued upward trend in polyester filament prices.

1. Crude oil has risen moderately since November, driving upstream raw material prices. The upstream sources of polyester are PTA and MEG. Recently, PTA and MEG prices have both risen, driven by crude oil prices, and polyester filament prices have also followed suit. With some support from the cost side, the price of polyester filament is easy to rise but difficult to fall.

2. Due to supply-side disturbances, environmental protection regulations and power cuts have recently occurred in Zhejiang, a major textile province, which has affected the growth of polyester. silk production. In December, in order to achieve dual energy control tasks, some areas in Zhejiang Province issued power restriction policies. As a major textile manufacturing province, Zhejiang Province is expected to have a certain impact on the production of polyester companies during power cuts, leading to a contraction in supply. Moreover, as the end of the year approaches and textile companies continue to suspend production and take holidays, it is expected that the supply side will be further reduced, which may lead to an intensification of the mismatch between supply and demand in the short term.

3. The current production and sales exceed 100%, and the inventory is at a low level. The active purchasing of downstream textile companies has driven up the production and sales rate of polyester filament. The current production and sales rate of mainstream manufacturers in Jiangsu and Zhejiang is around 100%-120%, an increase of 10 percentage points from the previous week. In addition, according to data from China Fiber Network, as of December 18, the stocks of DTY, POY, and FDY were 20/5/10 days respectively, down 1/2/1 day from the previous week. Inventory is already negative, and low inventory is expected to support the continued strength of polyester filament prices.

In the long term, the concentration of the polyester filament industry continues to increase, and the turning point is expected to arrive early.

In recent years, the market share of leading polyester companies has gradually increased. According to statistics, there are currently 8 domestic polyester companies with more than 2 million tons of polyester, and their total production capacity is 31.85 million tons, accounting for nearly 50% of the total domestic polyester production capacity. Among them, Hengyi has a production capacity of 6.98 million tons and Tongkun has a polyester production capacity of 5.9 million tons. The combined production capacity of the two companies is 12.88 million tons, accounting for 20% of the total domestic polyester production capacity. They have a large market share and the polyester industry pattern is dominated by leading companies. It is beginning to take shape, and it is expected that industry concentration will continue to increase in the future. This is mainly due to:

1. The winding head restricts the release of supply-side production capacity, making it difficult for small and medium-sized enterprises to expand production. The high-end winding head is the core component for the production of polyester filament, and its production capacity is concentrated in the hands of the two largest companies in the world – Germany’s Barmag and Japan’s TMT. Since the winding heads produced by the two major companies each year can only bring 2.5 million tons of production capacity increase to the polyester filament industry, accounting for 6% of the national production capacity, the winding heads have greatly restricted the expansion of polyester filament. Not only that, the high-end winding heads of these two companies have been continuously purchased by domestic giants Tongkun Co., Ltd., Hengyi Petrochemical and Xinfengming. They have reasonably controlled the release of polyester filament production capacity. This means that it will be extremely difficult for small and medium-sized enterprises to expand production. On the one hand, small enterprises have no money to expand production, and on the other hand, medium-sized enterprises do not dare to expand because they have no industrial chain and are constrained by equipment. Therefore, industry concentration is expected to continue to increase.

2. The epidemic in the first half of the year accelerated the clearance of industry production capacity, and it is difficult to recover in the short term. Due to the special production equipment of the filament industry, it is difficult to resume production after a shutdown. At the same time, most of the new polyester production capacity this year is the expansion of production and capacity of leading companies. Leading companies continue to expand their market share, which not only consolidates their competitive position, but also strengthens their control over prices. Gather for now�As far as the industry is concerned, the concentration of the industry is high, and larger enterprises play a certain leading role in the market, jointly promote market development, maintain the profit level of the industry, and to a certain extent, are also beneficial to the healthy and stable development of the industry. Polyester companies are lengthening and broadening the industrial chain through horizontal or vertical integration. Companies with large scale, strong strength and complete industrial chain supporting facilities will have more say. Therefore, in the future polyester industry, brand effect and large-scale development will be the key. An important bargaining chip for enterprises to compete for the market. Therefore, the production capacity cleared in the short term will not come back due to improvement in industry profits.

Usually, the polyester filament industry has an upward and downward cycle of about three years. The boom reached its peak in 2018 and is in a downward cycle in 2020. The profits of the entire industry have declined. Leading companies have maintained their capital and suffered small losses, while small businesses in a single industry have suffered losses. Under the influence of the epidemic, the turning point is expected to arrive early, and the polyester filament industry is expected to maintain a positive trend in 2021. </p

This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.tradetextile.com/archives/29052

Author: clsrich

 
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