At present, the domestic polyester industry chain is in the expansion and integration stage, especially the larger polyester companies in the industry, which are still adding or acquiring polyester production capacity, and at the same time extending their own industrial chain to the upstream raw material industry.
For polyester filament, Under this year’s epidemic, downstream demand has been unable to effectively support its market. Although the market is not optimistic about the polyester market, there are still polyester plants that continue to be put into production. Taking June as an example, the total production capacity of the devices put into operation was approximately 1.55 million tons. Recently, another leading polyester manufacturer has put into production a polyester filament production line.
Haining Hengyi New Materials: The second production line of a 1 million-ton-per-year device Put into production and produce qualified products
On the 17th, the first phase of Haining Hengyi New Materials Project “1 million tons of differentiated environmentally friendly functional fiber construction project with an annual output “The second set of production line F line and related supporting projects were successfully put into operation and officially produced qualified products.
It is reported that the first production line G line of the first phase project (capacity 250,000 tons/year) and related supporting projects have been completed It was successfully put into production on February 23 this year. The product was successfully sold to the outside world and received good market response. The project put into production this time is the second production line of the first phase project.
It is understood that Haining Hengyi new materials project is one of the core projects of Hengyi Group’s strategic planning First, it is also the largest single project in the country with the most advanced intelligence and technical equipment. It is built by Haining Hengyi New Materials Co., Ltd., a subsidiary of Hengyi. The project is committed to building a “domestic first-class, industry-leading” intelligent chemical factory. The second phase of the new environmentally friendly high-quality fiber project has officially signed a contract of intent on April 15 this year.
Under the epidemic, leading polyester companies are ramping up production
In the upstream of the textile industry chain, the concentration of leading chemical fiber companies is gradually increasing, and their influence on the entire industry chain is also growing. The market share of the top five companies in the polyester yarn industry and the new production capacity in the past two years are almost all derived from these industry leaders. In the past two years, the polyester yarn industry has added a total of 7.77 million tons of new production capacity, and the top five manufacturers in the industry alone contributed 6.4 million tons of additional production capacity.
China’s polyester yarn production capacity pattern in 2020:
How to explain the crazy increase in production of leading polyester companies under this year’s epidemic?
On the one hand, it is based on the industrial layout of domestic leading polyester companies accelerating the refining and polyester integration. On the other hand, judging from the ownership of the production equipment of the group, it is basically the top five polyester filament production capacity. Among enterprises, leading enterprises have strong capital and risk control capabilities. Under the unoptimistic supply and demand pattern, they expand their production capacity through their own corporate strength to further increase their industry share, squeezing the living space of small and medium-sized enterprises; in addition, most of the products put into production have Unconventional products with certain differentiation. Therefore, even though the imbalance between supply and demand for polyester filament yarn was significant in the first half of the year, leading companies still “bounced the trend” and implemented their previous production plans from the perspective of the industry’s long-term strategy.
At the same time, affected by the sharp decline in international crude oil prices, the prices of polyester industry chain products have shown a downward trend, but The prices of upstream PTA and MEG have dropped significantly higher than that of polyester, and the profits of the industrial chain have shifted to the downstream. The profitability of polyester filament yarns of leading enterprises will increase significantly. On the downstream demand side, although the epidemic may have an impact on the downstream demand for polyester, the demand for polyester is closely related to the national economy. In the long run, market demand will continue to grow with consumption upgrades. On the other hand, production capacity expansion will gradually increase market share. , and also bring continuous growth to performance.
High concentration in an industry or as small as a company does not mean weak market competition. High concentration may Coexisting with fierce competition, especially in the current international economic situation. As far as polyester filament is concerned, the industry is highly concentrated, and larger companies play a leading role in the market, jointly promoting market development and maintaining industry profit levels, which to a certain extent is also beneficial to the healthy and stable development of the industry.
In the future, competition in the polyester market will further intensify, the granularity of business operations will be refined, and cost control will become more stringent. Polyester production companies will grow and develop through horizontal or vertical integration. With a wide industrial chain, enterprises 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 important bargaining chips for enterprises to compete for the market. </p
