At present, PTA (pure terephthalic acid) companies can be described as unsatisfactory both inside and outside, not only the industry's own overcapacity intensifies, but also look downstream, the poor transmission of polyester inventory to the terminal, to look upstream, but also to face up and down the PX (right Xylene) price. From considerable profits to losses, the PTA industry took only a little less than a year.
The factors such as the excessive growth of investment and the excess of surplus caused by new production capacity are the main problems in the current PTA industry chain. Looking back at the history of the expansion of polyester, PTA and PX industries, not only can we find the reasons for the rapid decline in the profits of the entire industry chain, but we can also find that the reshuffle that the polyester industry is experiencing may be only a prelude to the progressive reshuffle of the industrial chain.
Between 2009 and 2010, when cotton prices rose, the State Reserve Cotton sold at a low price, which was equivalent to subsidizing downstream companies, and attracted global orders to China, driving demand for alternatives and chemical fiber. The polyester industry ushered in an unprecedented bumper harvest year. Compared with other companies in the industry chain, the polyester companies are quickest to reach the end-users with soaring demand information, and the industry has achieved a short production cycle, so it has taken the lead in opening up the geometric growth of production capacity. Statistics show that at the end of 2011, the total domestic polyester production capacity was 32 million tons, a year-on-year increase of 14.8%, and the growth rate exceeded that of the chemical fiber industry. However, since 2011, due to tight monetary policy and wide fluctuations in crude oil and other factors, 6% of the polyester industry's profit margins have quickly disappeared. By the first half of this year, the industry has suffered large-scale losses.
With the expansion of polyester production capacity, its profits have shifted to upstream PTA. From the end of 2010 to the third quarter of 2011, under the surge in demand, the PTA industry also ushered in a rare round of industrial profits. The highest profit margin of 25% allowed the industry to follow the polyester expansion.
This year is the expansion year of the PTA industry. Although only 700,000 tons of equipment of Far East Petrochemical was completed in the first half of the year, in the second half of the year, a large number of new equipment such as Tongkun Group's 1.5 million tons and 2.2 million tons of Hengli Chemical Fibers will soon be put into operation. Under the expected factor of 50% expansion of total production capacity, PTA bid farewell to the era of profiteering, and the profit of the industry quickly recovered from above 2300 yuan/ton in the first half of last year.
From the perspective of profitability, only PX is currently the only product in the PTA industry chain, and there is room for profit of around US$150/ton. However, industry sources have told reporters that if Tenglong Petrochemical, Fujia Dahua and Pengzhou Petrochemical and other three sets of PX devices reach production, then the only industry with stable profits, I am afraid will also face the plight of unprofitable profitability.
Hong Jiangyuan, chairman of Xiangyu, a long-time concern of the chemical fiber industry, is more pessimistic about the profitability expectations of the PTA industry chain. He told reporters that in 2013, the capacity of upstream and downstream varieties of the PTA industrial chain will reach its peak. With the gradual shift of domestic textile orders to countries such as Bangladesh, Vietnam and Pakistan, the growth rate of orders for the chemical fiber industry will turn negative. He believes that the lack of long-term upward momentum of crude oil, 'is expected to start next year PTA industry chain will be reduced to 70%, the product will continue to lose money. '
The rapid expansion of industry scale and the shrinking of terminal textile demand have become the main contradictions faced by the PTA industry chain at this stage. The path of changes in the polyester industry indicates that the industry is replicating the story of “industry-excess-loss-shuffle†that has already been staged in various industries such as steel, photovoltaics and electrolytic aluminum. Although at the current stage the polyester industry only broke out of individual companies, the PTA industry is still located at the point of 'surplus-loss', and the PX industry is still on the eve of surplus, but after eliminating the possibility of soaring crude oil, the future polyester industry will Leading the PTA industry chain is faced with a progressive upswing.
The factors such as the excessive growth of investment and the excess of surplus caused by new production capacity are the main problems in the current PTA industry chain. Looking back at the history of the expansion of polyester, PTA and PX industries, not only can we find the reasons for the rapid decline in the profits of the entire industry chain, but we can also find that the reshuffle that the polyester industry is experiencing may be only a prelude to the progressive reshuffle of the industrial chain.
Between 2009 and 2010, when cotton prices rose, the State Reserve Cotton sold at a low price, which was equivalent to subsidizing downstream companies, and attracted global orders to China, driving demand for alternatives and chemical fiber. The polyester industry ushered in an unprecedented bumper harvest year. Compared with other companies in the industry chain, the polyester companies are quickest to reach the end-users with soaring demand information, and the industry has achieved a short production cycle, so it has taken the lead in opening up the geometric growth of production capacity. Statistics show that at the end of 2011, the total domestic polyester production capacity was 32 million tons, a year-on-year increase of 14.8%, and the growth rate exceeded that of the chemical fiber industry. However, since 2011, due to tight monetary policy and wide fluctuations in crude oil and other factors, 6% of the polyester industry's profit margins have quickly disappeared. By the first half of this year, the industry has suffered large-scale losses.
With the expansion of polyester production capacity, its profits have shifted to upstream PTA. From the end of 2010 to the third quarter of 2011, under the surge in demand, the PTA industry also ushered in a rare round of industrial profits. The highest profit margin of 25% allowed the industry to follow the polyester expansion.
This year is the expansion year of the PTA industry. Although only 700,000 tons of equipment of Far East Petrochemical was completed in the first half of the year, in the second half of the year, a large number of new equipment such as Tongkun Group's 1.5 million tons and 2.2 million tons of Hengli Chemical Fibers will soon be put into operation. Under the expected factor of 50% expansion of total production capacity, PTA bid farewell to the era of profiteering, and the profit of the industry quickly recovered from above 2300 yuan/ton in the first half of last year.
From the perspective of profitability, only PX is currently the only product in the PTA industry chain, and there is room for profit of around US$150/ton. However, industry sources have told reporters that if Tenglong Petrochemical, Fujia Dahua and Pengzhou Petrochemical and other three sets of PX devices reach production, then the only industry with stable profits, I am afraid will also face the plight of unprofitable profitability.
Hong Jiangyuan, chairman of Xiangyu, a long-time concern of the chemical fiber industry, is more pessimistic about the profitability expectations of the PTA industry chain. He told reporters that in 2013, the capacity of upstream and downstream varieties of the PTA industrial chain will reach its peak. With the gradual shift of domestic textile orders to countries such as Bangladesh, Vietnam and Pakistan, the growth rate of orders for the chemical fiber industry will turn negative. He believes that the lack of long-term upward momentum of crude oil, 'is expected to start next year PTA industry chain will be reduced to 70%, the product will continue to lose money. '
The rapid expansion of industry scale and the shrinking of terminal textile demand have become the main contradictions faced by the PTA industry chain at this stage. The path of changes in the polyester industry indicates that the industry is replicating the story of “industry-excess-loss-shuffle†that has already been staged in various industries such as steel, photovoltaics and electrolytic aluminum. Although at the current stage the polyester industry only broke out of individual companies, the PTA industry is still located at the point of 'surplus-loss', and the PX industry is still on the eve of surplus, but after eliminating the possibility of soaring crude oil, the future polyester industry will Leading the PTA industry chain is faced with a progressive upswing.
Door Handle,Aluminium Handle,Cabinet Handle
Botai Window Decoration Material Co., Ltd. , http://www.wlcurtainrod.com