Affected by the new crown epidemic, 2020 has had a bad start. Some people say that the second half of this year will be more difficult. However, leading textile raw material companies have successively received large investment information, which is really puzzling.
On the morning of March 29, the groundbreaking ceremony of Xinjiang Zhongtai Group’s 500,000-ton polyester project per year was held in the Korla Petroleum and Petrochemical Industrial Park. The project has an investment of approximately 3.4 billion yuan (RMB, the same below). After it is put into operation, it will achieve annual sales revenue of 3.76 billion yuan and a value-added tax of more than 57 million yuan.
It is understood that this project is a key project to achieve the coupled development of the petroleum and petrochemical industry and the textile and clothing industry. It is jointly developed by Xinjiang Zhongtai Group and Zhejiang Zhengkai Group jointly invested in the construction and was included in the key projects of the Xinjiang Uygur Autonomous Region. It is planned to be completed and put into production by the end of 2021. The project includes an annual output of 250,000 tons of filament yarn and an annual output of 250,000 tons of short fiber, which can directly create employment for more than 600 people and stimulate employment of more than 50,000 people in downstream supporting industry chains such as weaving, printing and dyeing.
Wang Hongxin, Secretary of the Party Committee and Chairman of Xinjiang Zhongtai Group, said that this project is very important to promote the upgrade of textile and clothing from cotton spinning to chemical fiber spinning and cotton fiber blending, and to achieve the diversification of textile and clothing fabrics. “The completion and implementation of the project can promote the accelerated transformation and upgrading of the textile and garment industry in southern Xinjiang, further absorb the surplus labor force, realize the supply of raw materials in Xinjiang, local digestion of products, and benefit the local industry, effectively fill the gap in Xinjiang’s chemical fiber industry, and create a cotton spinning, viscose spinning , blended textile industry pattern, helping Xinjiang move from a “cotton region” to a “textile region”.” Wang Hongxin said.
According to reports, three of the four major new projects deployed by Xinjiang Zhongtai Group in 2020 will be implemented in the Bayingolin Mongolian Autonomous Prefecture, with a total investment of 7.5 billion yuan, and all are listed as key projects in the Xinjiang Uyghur Autonomous Region. As one of them, this project took the lead in laying the foundation stone.
Hengyi Petrochemical also announced on the evening of February 23 that the first production line G line of the “1 million tons annual output of differentiated environmentally friendly functional fiber construction project” built by its subsidiary Haining Hengyi New Materials Co., Ltd. (capacity: 250,000 tons/year) and related supporting projects were put into production on February 23, 2020, and officially produced qualified products. The products are mainly POY fine denier. Data show that Haining Hengyi New Materials Company’s “1 million tons of differentiated environmentally friendly functional fiber construction project per year” plans a total investment of 6.36 billion yuan, using advanced melt direct spinning, intelligent manufacturing and green manufacturing technologies. After all are put into production, it will Create a functional fiber production capacity of 1 million tons.
Leading companies have released their production capacity, and about 3 million tons of production capacity will still be put on the market this year
According to institutional data, from January to October 2019, my country’s polyester filament production increased by approximately 6.4% year-on-year. Considering that polyester still has a certain profit, polyester filament supply is unlikely to see large-scale production cuts in the short term. The actual growth rate of domestic supply in 2019 is expected to be around 5%-7%. According to this situation, in 2020, polyester filament will still have about 3 million tons of production capacity put on the market, mainly due to the release of production capacity by leading companies; production capacity growth will be about 7.5%. Considering that the epidemic has caused the delay in the resumption of polyester production, in a relatively optimistic situation Under this scenario, the annual polyester production start-up will decline by 0.5%, and the neutral polyester output growth rate will be around 6%.
Hengyi Petrochemical has increased its volume of polyester in recent years. In the future, the capacity of polyester raw materials such as PX, PTA, and MEG will be greatly expanded, and the cost of polyester will remain loose. The increase in filament concentration will also help to maintain relatively stable prices. It is expected that in the long run The silk price difference is expected to expand, and Hengyi Petrochemical will benefit.
The raw material end of filament yarns is mainly PX, PTA and ethylene glycol (MEG), and the main materials of filament yarns account for more than 90% of its production costs; due to the expansion of ethylene projects under low oil prices, superimposing synthesis gas to produce ethylene glycol in Concentrated release in the future (technological progress, coal price to ensure cost competitiveness, product color index optimization); in addition, PTA is relatively mild compared with the above two products, but also higher than the filament end; in addition, the future expansion of filament will focus on the leader , CR5 has a 5pct increase, so the moderate expansion will gain a more favorable voice for the filament end.
Major polyester manufacturers have accelerated their production speed, and industry concentration has continued to increase
In recent years, unlike the substantial expansion of production capacity of raw materials PX and PTA, domestic polyester Industry production capacity has been in a state of moderate expansion, and in recent years, the overall new production capacity has been concentrated in leading manufacturers such as Tongkun, Hengyi and Xinfengming. Under the trend of moderate expansion of production capacity, the concentration of the domestic polyester industry continues to increase.
After experiencing a decline in production capacity growth from 2015 to 2016, the domestic polyester industry has returned to a higher level of production capacity growth since 2017. Among them, the growth rate of domestic polyester production capacity in 2018 reached the highest level in recent years. The level is 8.2%. Entering 2019, dragged down by the severe global trade situation and the gradual decline in the domestic polyester industry’s prosperity, the competition in the polyester industry has intensified, and the production plans of some factories have been repeatedly postponed during the year. By the end of 2019, a total of 19 new polyester devices have been added , the new production capacity was 3.59 million tons, and the total production capacity was 58.89 million tons, with the growth rate falling back to around 6.3% compared with the end of 2018.
Sluggish terminal demand and declining product profits have jointly led to the concentration of polyester maintenance equipment at the end of the year. Data shows that the polyester start-up load in 2019 dropped slightly compared with 2018, but due toDuring the year, 3.59 million tons of new equipment was put into operation, allowing domestic polyester output to still show rapid growth in 2019. Domestic polyester production will reach 49.98 million tons in 2019, an increase of nearly 10% from 2018.
From the perspective of new production capacity, in recent years, most of the new domestic polyester production capacity has been the expansion of the production capacity of leading manufacturers. So far, the domestic polyester industry has added a total of 3.59 million tons of production capacity in 2019, and the top ten factories in terms of production capacity have added 2.4 million tons of new production capacity during the year, accounting for nearly 70% of the new production capacity during the year. From the perspective of industry concentration, in recent years, major polyester manufacturers have accelerated their production speed, and industry concentration has continued to increase. </p
