This year marks the 30th anniversary of the establishment of my country’s futures market and the 30th anniversary of the establishment of the Zhengzhou Commodity Exchange (hereinafter referred to as the “Zhengzhou Commodity Exchange”). On October 12, my country’s futures market welcomed a new product, short fiber futures were listed on the Zhengzhou Commercial Exchange. Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission, and Dai Bohua, Vice Governor of Henan Province, jointly sounded the gong for the listing of short fiber futures that day.
From an industry perspective, after PTA futures, my country’s polyester industry chain has ushered in a new futures variety. At the same time, short fiber futures are also the first futures variety of chemical fiber products.
How has the overall development of my country’s polyester staple fiber market been in recent years? In this year’s special market environment, although the performance of the polyester staple fiber market is not as good as that of the same period last year, why is it still better than expected? What are the operating pain points faced by polyester staple fiber companies at the current stage? On the basis that PTA futures have matured and are highly correlated with current prices, what impact will short fiber futures have on polyester staple fiber companies and related companies in the polyester industry chain after the listing of short fiber futures? How should industrial enterprises make better use of futures tools to comprehensively manage business risks?
On the day when short fiber futures were launched, the Zhengzhou Commodity Exchange also held a short fiber industry seminar. In response to these hot topics, relevant persons in charge of 15 domestic polyester staple fiber companies including Sinopec Yizheng Chemical Fiber Co., Ltd., Sanfangxiang Group Co., Ltd., Fujian Jinlun High Fiber Co., Ltd., as well as relevant traders and futures companies The person in charge conducted an in-depth discussion at the seminar.
Polyester staple fiber products are of great use
Polyester staple fiber is one of the downstream products of PTA. For every ton of polyester staple fiber produced, 0.86 tons of PTA and 0.34 tons of ethylene glycol (MEG) are consumed. The polyester (PET) produced by polymerizing PTA and ethylene glycol is spun, stretched and cut in a molten state. The short fiber obtained is polyester staple fiber.
From the perspective of production technology, there are currently two processes for producing polyester staple fiber in my country, including melt direct spinning and chip spinning. Melt direct spinning is the mainstream advanced process in my country’s polyester industry in recent years. It has outstanding characteristics such as process integration, large-scale, large single-line production capacity, and high production efficiency. It is currently the main production process used by domestic polyester staple fiber manufacturers. .
After decades of rapid development, polyester staple fiber has become the second largest variety of chemical fibers in my country, and the first largest variety is polyester filament. my country is currently the world’s largest producer and consumer of polyester staple fiber.
Relevant statistical data show that in 2019, my country’s total polyester staple fiber production capacity was approximately 7.585 million tons, and the output was approximately 6.15 million tons. During the same period, the output of polyester filament was approximately 37.31 million tons, that of viscose fiber was approximately 4.124 million tons, and that of nylon was approximately 3.5 million tons.
Statistical data from the National Bureau of Statistics and the China Chemical Fiber Industry Association show that from January to July this year, my country’s output of polyester staple fiber was approximately 5.9534 million tons; during the same period, the output of polyester filament was approximately 2038.89 tons million tons, the output of nylon is about 2.3494 million tons, and the output of viscose staple fiber is about 1.9935 million tons.
From the perspective of downstream application fields, polyester staple fiber is divided into three categories: spinning, filling and non-woven. Spinning is the main use of polyester staple fiber. Polyester staple fiber is an important raw material in the cotton and wool spinning industries. It can be spun alone or blended with cotton, regenerated cellulose fiber, hemp, wool and other fibers into yarn. It is widely used in knitted and woven clothing products. At the same time, polyester staple fiber is also widely used as filling material for clothing, home furnishing and other products. For example, polyester staple fibers are inseparable from the linings of cotton-padded clothes that have good thermal insulation effect in winter, quilt cores and pillow cores in bedding, various plush toys that need to be filled, and household items that need to be filled such as sofas.
Polyester staple fiber is also widely used in the industrial nonwoven field. Especially under the background of global epidemic prevention and control this year, the demand for various types of masks, sanitary wipes, medical supplies and other fields has increased rapidly, which has driven the rapid increase in demand for some upstream polyester staple fiber varieties. In addition, polyester staple fiber can also be used in industrial fields such as geotextiles, leather-based fabrics, and linoleum-based fabrics.
Relevant statistics show that in 2019, my country’s polyester staple fiber consumption was approximately 5.45 million tons, a year-on-year increase of 14.9%, with both consumption and growth reaching new highs in recent years. Among them, the proportion for spinning accounts for about 75.2%, and the total proportion for non-woven fabrics and filling fields is 24.8%.
The overall short fiber market this year is better than expected
my country’s polyester staple fiber manufacturers are currently mainly concentrated in Jiangsu, Zhejiang and Fujian. The annual polyester staple fiber output of the three provinces accounts for more than 80% of the country’s total polyester staple fiber output. The industry has also formed Sinopec Yizheng Chemical Fiber Co., Ltd., Sanfangxiang Group Co., Ltd.Everyone has sold the goods on the futures market in advance, which greatly reduces the sales pressure on the spot market. It is precisely because of PTA futures that in such an extreme market environment this year, my country’s PTA market has experienced the coexistence of high inventory and high processing fees. From the beginning of the year to October 11, the processing fee of PTA reached 620 yuan/ton, which is quite ideal and much better than what we expected at the beginning of the year. Without futures, this would simply not be possible. Our experience has certain reference significance for polyester staple fiber companies,” Wen Hao said.
The relevant person in charge of Zhengzhou Commercial Exchange said that as the futures varieties of the polyester industry show a “cluster effect”, It will build a more diversified risk management system for China’s polyester industry chain, better help the polyester entity industry to comprehensively manage risks and operate more steadily.
Industry insiders also pointed out that China’s chemical fiber production volume and consumption have ranked first in the world for many consecutive years. With the help of futures varieties in the polyester industry chain, it will help enhance the pricing power of China’s polyester industry in the global polyester market, as well as its overall competitiveness and influence in the world. .
“In recent years, the export volume of China’s polyester staple fiber products has shown an overall increase trend. After the futures are listed, spot companies can quote fixed prices required by foreign customers based on forward futures prices when quoting products for export, and lock in the processing range in advance through hedging. This will help enhance the competitiveness of my country’s polyester staple fiber companies in the global market. pricing power. “Liu Dewei said.
“Based on 30 years of development, my country’s futures market has the ability to become an important global pricing center. At present, my country’s futures market has played a major role in serving the development of the real economy, especially during the epidemic. The next step is to enhance its international influence; it is necessary to focus on solving practical problems in my country’s economic development, and to strengthen the risk management and management of real enterprises. Respond quickly to the industry’s demands for quality improvement and efficiency, efficiently serve the country’s economic development, ensure that no detours are made, and make due contributions to modernization. ” Fang Xinghai said this at the 30th anniversary symposium of Zhengzhou Commodity Exchange and China Futures Market.