The Zhengzhou Commodity Exchange issued the “Announcement on Soliciting Opinions on Short Fiber Futures Contracts and Rules and Systems” on September 10, soliciting opinions and suggestions on short fiber futures contracts and rules and systems from the entire market. The deadline for feedback is September January 16th. This also means that polyester staple fiber is getting closer to the market. As an important textile raw material, the author will introduce to you the past and present life of polyester staple fiber.
Introduction to short fiber
Short fiber is an important chemical Fiber, the main component is synthesized from PTA and ethylene glycol as raw materials. Since staple fiber entered my country in the 1970s, its market size has developed rapidly due to its wide range of uses and low price, and it has become an important raw material in textile, clothing, home textile and other industries. Polyester has a wide range of uses and is widely used in the manufacture of clothing and industrial products. In addition to playing an irreplaceable role in textiles, building interior decoration, transportation interior decoration, etc., flame retardant protective clothing also plays a lot of roles in chemical industry, petroleum, fire protection and other departments.
The current situation of polyester staple fiber
Data source: Jin Lianchuang
Since 2016, China’s polyester industry has experienced rapid development after the elimination of old production capacity, and polyester staple fiber has also been affected by This has led to a steady rise, coupled with the promulgation of the ban and abolition order in 2017, which also caused polyester staple fiber to break through the 9,000 yuan/ton mark. Entering 2019, with the successive commissioning of large-scale private refining and chemical plants, the decline in polyester raw materials has continued to reduce the cost of polyester. Coupled with the continuous expansion of polyester staple fiber production capacity, supply pressure has increased and prices have continued to decline. In 2020, due to the epidemic, downstream demand has weakened, prices have been falling, and it is difficult to rebound. Even in the traditional peak season, prices are still hovering around 5,400 yuan/ton.
Data source: Jin Lianchuang
In recent years, polyester short The fiber gradually replaces cotton, its application fields have been broadened, and the domestic polyester staple fiber industry continues to expand production. In 2019, China’s polyester staple fiber output was 6.121 million tons, a year-on-year increase of 13.9%. However, due to the rapid expansion of polyester filaments in recent years, the overall proportion of short fibers in the polyester fiber industry is still declining.
Data source: Jin Lianchuang
China’s polyester short products in 2019 The export volume of fiber was 994,700 tons. Affected by the trade war, foreign orders are more cautious, and the relatively low costs of countries such as Vietnam have increased the share of some exports, so export volumes have declined in recent years. China’s polyester staple fiber imports amounted to 219,300 tons. An increase of 13.62% compared with 202,400 tons last year. An increase of 42.35% from 153,000 tons in 2017. Affected by the “waste ban” at the end of July 2017, downstream weaving companies have increased demand for virgin staple fibers, and imports have increased significantly. At present, domestic differentiated polyester staple fiber is not yet self-sufficient. Due to the sharp rise in prices of hollow and low-melting point staple fibers that the country relies on for imports, this part of the country’s import dependence has also increased, which has also caused my country’s polyester staple fiber imports to increase to a certain extent. growth of.
Data source: Jin Lianchuang
2015-2016, The polyester staple fiber industry has been in a situation of oversupply for a long time. Enterprises have been in a state of meager profits or even losses, and the capacity utilization rate continues to be low. Since the implementation of the waste ban policy in 2017, polyester short fiber has replaced some recycled short fibers, resulting in an expansion trend in industry demand, but it has also attracted the investment of many new production capacities. The apparent consumption of polyester staple fiber in 2019 was 5.36 million tons, an increase of 830,000 tons compared with the same period last year. In 2020, with the continuous release of new production capacity, the advantages of primary substitution and regeneration, etc., apparent consumption is expected to reach 6.1 million tons.
Introduction to short fiber futures
Polyester staple fiber futures adopt the whole factory warehouse delivery method. The delivery area is planned to be set in Jiangsu, Zhejiang and Fujian, the main production and sales areas of short fiber. After listing, ZCE will gradually expand the scope of futures delivery based on market operation conditions and industry needs. The short fiber warehouse receipt is valid for up to 4 months. The specific regulations are: Standard warehouse receipts registered before the 15th trading day (inclusive) of January, May and September every year shall be canceled before the 15th trading day (inclusive) of the month.
The futures market is an important part of a mature market economic system and an effective place for enterprises to manage price risks. Downstream factories can buy hedging through the futures market, effectively locking in the risk of rising product prices and obtaining expected sales profits, promoting the company’s steady development and improving operating efficiency. When purchasing raw materials, whether it is a fixed price or a fixed price method, hedging can be carried out based on market predictions.operation, which can effectively avoid the risk of depreciation between the signing of the purchase contract and the arrival of raw materials at the factory. </p
