Following the fiery expansion pace of the polyester filament industry, currently, the polyester staple fiber industry has also entered a new period of scale expansion, ushering in New competitive landscape.
At the same time, short fiber futures have been trading on the Zhengzhou Commodity Exchange (hereinafter referred to as “Zhengzhou Commercial Exchange”) has been in operation for 10 months since its listing.
“As an important part of the modern economy, the futures market is an important reference for studying and judging the macro situation, an important platform for the development of service industries, and an important tool for residents’ wealth management. Channels.” Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the recently held “2021 Qingdao China Wealth Forum”.
On the one hand, there are new changes in the market situation of the industry itself, and on the other hand, financial instruments are accelerating their integration into the real industry.
When the two collide fiercely, what changes are taking place in the polyester staple fiber industry?
The polyester staple fiber industry faces a new competitive landscape
Polyester staple fiber is one of the major chemical fibers in my country. The second largest variety, my country is currently the world’s largest producer and consumer of polyester staple fiber. Although the production capacity of the polyester staple fiber industry has grown relatively slowly in the past few years, in the past two years, the industry has also begun to enter a period of rapid expansion of production capacity. Moreover, this round of capacity expansion reflects an obvious feature. Many leading polyester filament companies have begun to get involved in polyester staple fiber.
In the 2020 domestic polyester staple fiber production rankings released by the China Chemical Fiber Industry Association in May this year, Zhejiang Hengyi Group Co., Ltd. ranked first. In recent years, Hengyi Petrochemical’s polyester staple fiber production capacity has increased rapidly. As of the end of 2020, its total polyester staple fiber production capacity is 880,000 tons, involving Suqian Yida New Materials Co., Ltd. and Fujian Yijin Chemical Fiber Co., Ltd. (which has formed polyester The annual short fiber production capacity is 266,000 tons), etc.
Relevant statistics show that as of the end of 2020, my country’s total polyester staple fiber production capacity is approximately 7.92 million tons. Data from China Fiber Network shows that from January to June this year, my country’s total polyester staple fiber production was approximately 3.63 million tons, a year-on-year increase of 15.24%; the monthly device load average was 86.7%, an increase of 8.36 percentage points from 78.34% in the same period in 2020 . As of the end of June this year, my country’s polyester staple fiber production capacity was approximately 8.44 million tons.
It is particularly noteworthy that the expansion of the polyester staple fiber industry has accelerated significantly since this year. According to predictions from relevant agencies, in 2021, the domestic melt direct-spun polyester staple fiber production capacity planned to be put into production will be approximately 1.75 million tons, and the production capacity growth rate is expected to be 22%.
It is understood that the polyester staple fiber project of Xinfengming, a leading polyester filament company with an annual output of 600,000 tons, is expected to be put into production within the year. Hengli and other companies have also increased Polyester staple fiber production capacity plan. At the same time, the original leading polyester staple fiber companies have also accelerated their expansion. For example, in the fourth quarter of this year, Huaxi Co., Ltd. is expected to have new production capacity put into production.
Pang Chunyan, analyst at SDIC Essence Futures, pointed out: “Polyester staple fiber production capacity with expansion plans is expected to be put into production around the end of this year. Judging from the current situation Look, many leading polyester filament companies are entering the short fiber industry. Overall, the polyester staple fiber industry will also develop in the direction of scale and integration, and the concentration of production capacity of the equipment will continue to increase.
As for the next development trend of the polyester staple fiber industry, an industry insider pointed out that from 2022 to 2023, China’s polyester staple fiber industry will enter a period of rapid expansion. Large chemical fiber companies have the Comprehensive advantages such as scale and integration, and the commissioning of new integrated large-scale devices will further intensify competition in the industry. It is foreseeable that the living space of small enterprises will be squeezed in the future, and some backward production capacities will face elimination , the polyester staple fiber industry will face a reshuffle.
In this context, many companies are increasingly aware that in the process of responding to fierce market competition , we need to learn to “walk on many legs”. In addition to the traditional spot business model, learning how to use financial instruments to better respond to market price fluctuations and conduct comprehensive risk management is a new topic that needs attention.
“Differentiation is an important idea for short fiber companies to cope with the new market situation. At the same time, in the process of rapid industrial development, futures tools have injected new vitality into the development of the industry. The use of futures and cash has become a new idea for polyester staple fiber enterprises to comprehensively manage business risks. Enterprises can combine the actual conditions of their own production and operations, make good use of futures tools for hedging, manage costs and inventory well, and seek stable development while striving to find a development direction that suits them. Pang Chunyan said.
“In the future, enterprises must embrace the futures market with a more open mind, make good use of futures tools, and further enhance their ability to respond to market risks. ” said the person in charge of a polyester staple fiber company in Jiangsu.
Short fiber companies actively participate in the futures market
Short fiber futures were listed on the Zhengzhou Commercial Exchange in October 2020 and are the first futures variety of my country’s chemical fiber products. The listing of short fiber futures provides a new tool for enterprises to comprehensively manage operating risks and injects new vitality into the industry. Nowadays, the idea of combining futures and cash has gradually been integrated into the business ideas of polyester staple fiber enterprises.
The relevant person in charge of Zhengzhou Commercial Exchange introduced that short fiber futures as a part of Zhengzhou Commercial Exchange Made of polyesterIn factories, companies can also achieve pre-locking of processing fees. “Hu Xinmin said.
A downstream customer of the trading company Huayicheng mainly exports pure polyester sewing thread, and its export orders are often priced first and then produced. . If a customer locks in spot raw material prices to hedge the risk of rising raw material prices, a large amount of funds will be required. Li Feng said: “After we promoted futures long hedging to our customers, the customer company locked the price with only a small amount of funds, and then used price points to Methods to purchase raw materials and close long positions. In this way, customers avoid risks caused by large market fluctuations and earn stable processing fees.
Li Feng also introduced that due to production needs, another customer of the company must use Sinopec brand supplies. Huayicheng uses mature procurement channels and conducts hedging through reasonable basis calculations, thereby introducing the supply of delivery brands such as Yizheng Chemical Fiber into the futures market. Non-delivery brands such as Tianjin Chemical Fiber have also begun to price and sell based on short fiber futures, and market liquidity Further expansion will eventually help terminal companies purchase relatively low-priced Sinopec supplies through “point pricing”, which not only ensures the stability of their production, but also reduces costs.
In addition, short fiber futures also provide futures traders with the opportunity to first purchase spot goods for hedging in the futures market, and then sell them at a fixed price when the basis returns. It also provides good futures and cash hedging opportunities for factory product inventory, raw material procurement by downstream companies, and short fiber processing fees.
Fei Yang, futures and cash manager of Yongan Capital, pointed out that compared with the traditional trading model, the combination of futures and cash can give companies a stronger ability to fight against systemic risks. . The trade model that combines futures and cash can provide more effective services to downstream customers. Yongan Capital currently uses short fiber futures to sign long-term processing fee contracts with some short fiber factories. It supplies ethylene glycol and PTA to the cooperative short fiber factories every month. On the basis of the average price of raw materials, a fixed processing fee is added. , purchase spot staple fiber. Through this model, the profits of short fiber factories can be stabilized.
The reporter also learned that in the face of this year’s new environment in the polyester staple fiber market, some terminal industry customers and traders have changed their previous policy of using full payment to lock in goods. Price, hedging sales order risks, but the rational use of the futures market for hedging.
“In the second half of the year, as the supply of the polyester staple fiber market increases and demand further improves, it is expected that more companies will participate in short fiber futures to prevent Risks that may exist in sold orders and strive to win opportunities in the fierce market competition.” Li Feng said.
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