This week Hengli Petrochemical’s semi-annual performance reached a new high, polyester prices dropped sharply, Northern Jiangsu welcomed Big Mac again, polyester manufacturers stopped operations, and production cuts have reached 4.536 million tons…
Let’s take a look at what’s new this week!
Hengli Petrochemical’s half-year performance reached a new high
Hengli Petrochemical (600346) disclosed its 2021 interim report on the evening of August 16. The company achieved operating income of 104.574 billion yuan in the first half of 2021, a year-on-year increase of 55.25%, achieving attribution to listed companies Shareholders’ net profit was 8.642 billion yuan, a year-on-year increase of 56.65%.
In recent years, Hengli Petrochemical has continuously improved its upstream “big chemical industry” development platform through a series of key projects with high starting point planning and high-standard construction. Currently, it has built a 20 million tons of crude oil and 5 million tons of raw coal processing capacity as the starting point. The main output includes 4.5 million tons of PX, 1.2 million tons of pure benzene, 16.6 million tons of PTA (5 million tons of capacity under construction), 1.8 million tons of fiber-grade ethylene glycol, 85 10,000 tons of polypropylene, 720,000 tons of styrene, 400,000 tons of polyethylene, 140,000 tons of butadiene, 750,000 tons of methanol, 400,000 tons of acetic acid and 300,000 tons of pure hydrogen, transporting and It reserves various upstream raw material products with high added value that are in short supply domestically, and has the scarce capacity to develop a world-class petrochemical platform.
The editor has something to say: Facing the complex external environment, rising revenue and net profit bucked the trend, once again demonstrating Hengli Petrochemical’s excellent profitability and the resilience of the entire industry chain. Risk level.
Polyester prices greatly reduced!
Last Friday was also such a promotion day. The factory lowered the price by 200-400. This situation is still vivid in my mind, but the effect was not satisfactory.
As expected this week, international oil prices fell for the sixth consecutive time, and the performance of polyester raw materials was weak. Polyester manufacturers are welcoming promotions again, and this time the price reduction amount is as high as 100-450 yuan.
The editor has something to say: long-term price increases will inevitably lead to price cuts. The weaving market is sluggish and manufacturers have insufficient buying momentum. Even with promotions, production and sales are still difficult to reach peaks.
Northern Jiangsu welcomes Big Mac again
On the morning of August 6, the signing ceremony for the Xuzhou Tianhong high-end textile fabrics R&D and production project was held in Suining.
The Xuzhou Tianhong high-end textile fabrics R&D and production project has a total investment of approximately 10.5 billion yuan, building 1.2 million square meters of various high-standard factories, and 300,000 square meters of supporting ancillary and functional facilities. It has installed 300,000 cotton spinning production lines, 50 knitting and dyeing production lines, 25 woven and dyeing production lines, and 30 loose fiber dyeing production lines, and purchased 10,000 looms and 200 eddy current textile machines. The project is expected to be completed and reach production in 2025, and is expected to achieve sales revenue of 15 billion yuan and profits and taxes of 900 million yuan.
The editor has something to say: The gradual increase of peripheral looms is a very big challenge for local weaving manufacturers!
Polyester manufacturers have stopped and reduced production by 4.536 million tons
Recently, due to low polyester profits and high inventories, polyester factories are under pressure and some companies have begun to reduce production. It is understood that domestic mainstream polyester factories Tongkun, Xinfengming, Hengyi, and Tiansheng all plan to reduce production by approximately 20%, with a total production reduction of approximately 4 million tons, and the recovery time is yet to be determined. At the same time, some other polyester companies have also announced production reduction plans one after another. Currently, the production capacity involved in parking and reducing production is 4.536 million tons. The market outlook does not rule out that other domestic companies with relatively high inventories also have production reduction plans. Then the output of the domestic polyester industry will decline significantly. It is expected that after the load reduction, the industry output will be at the level of 1.09-1.1 million tons, and the load will be below 86%. Later, small and medium-sized enterprises will follow up, and the load may be reduced to around 83%.
The editor has something to say: Polyester manufacturers reducing inventory by reducing production and shutting down operations will inevitably lead to the possibility of rising raw material prices again in the future.
Market Review
Polyester : PTA market continues to decline this week. Risk aversion in the market has increased, international oil prices have broken through and fallen, and the mid-term trend of crude oil has weakened, and the cost-side support of PTA has weakened; PTA has gradually shown a situation of increasing supply and decreasing demand in mid-to-late August, and supply and demand in September may be lower than previously expected. The processing fee was previously above 700 yuan/ton, and there are expectations for a periodic reduction. At present, the mainstream quotation price of PTA is 4900-5050 yuan/ton. Under the double negative impact of cost and supply and demand, it is expected that PTA will continue its weak decline in the near future.
In terms of polyester filament, polyester filament fell slightly this week. At present, there are no signs of improvement in the overseas epidemic situation. There is great resistance to textile and clothing exports. Domestic gray fabric inventories continue to grow. End users have poor inventory liquidity and low purchasing willingness. In this case, although the promotion intensity is greater than last week, the effect is still not as good as expected! Crude oil and PTA both fell, and the cost side showed signs ofDue to the turmoil, polyester yarn trading volume is expected to mostly fall and consolidate next week.
In terms of profit, PX’s loss this week increased slightly compared with last week, and its current loss has increased to US$94/ton. As for PTA, its profit decreased this week, and its current loss is around 103 yuan/ton. In terms of ethylene glycol, the price has suffered a loss this week, and the current loss is US$15/ton. In terms of polyester filament, the price of polyester filament is stable this week, and profits have increased slightly due to cost reductions; FDY profits have risen to 119 yuan/ton; POY 150D profits have rebounded, with current profits of 389 yuan/ton; DTY 150D profits have rebounded, with current profits of 344 yuan/ton. Ton.
In terms of operating rate, the average weekly operating rate of PTA this week is concentrated at 70.6%, an increase of 2.7% from last week; the real-time operating rate is 71.4%, The real-time effective operating rate is 78.9%. In terms of polyester, the average polyester load this week was concentrated at 87%, falling slightly. In terms of weaving, the weaving operating rate has recently dropped to around 70%.
In terms of production and sales, the transaction atmosphere of polyester yarn in the market this week was deserted, and the price of polyester yarn was stable with some decline. At the same time, due to the off-season, downstream textile companies were not very enthusiastic about purchasing, and most of the transactions were in small batches. A cautious wait-and-see mentality dominates. Although some manufacturers have reduced prices, overall production and sales are still only about 20-40%.
In terms of inventory, according to the statistics of China Silk City Network, the overall inventory of the polyester market is now concentrated in 19-29 days; in terms of specific products, POY inventory is up to 16-29 days. On 25 days, FDY inventory is around 19-21 days, while DTY inventory is around 22-30 days.
Weaving: It can be seen from the Shengze Index of the Ministry of Commerce that the downstream market is still in the off-season. The overall transaction atmosphere of the textile market is average, and there is a lack of downstream fabric orders. The raw material market has become loose this week, and the prices of some polyester products have gradually dropped. The high price of spandex raw materials has led to a significant increase in the production costs of downstream elastic fabric weaving companies. Orders for four-way elastic have begun to decrease slightly. At the same time, it is difficult to increase fabric prices. At present, the weaving operating rate in Shengze area has fallen back to about 70%; in addition, with the poor supply of goods in the market, the overall gray fabric inventory has also begun to rise slightly to about 39.8 days.
Printing and dyeing: The activity of the printing and dyeing market dropped slightly this week, and the number of gray fabric dyeing dropped from last week. The quantity of gray cloth entering the warehouse decreased slightly, and the operating rate dropped to 67%. The operating rate of most dyeing factories is below 70%, a few dyeing factories with low operating load are only 50-60%, and a few have operating rates of less than 50%.
We are still in the traditional textile season, and new orders are being placed slowly and in small quantities. Coupled with the impact of high temperatures, workers are taking more leave and there is a shortage of labor, resulting in low operating rates. In terms of products, autumn and winter fabrics such as elastic fabric, nylon and pongee are still the main products, while other fabrics lack highlights.
In terms of delivery time, as the number of dyed gray fabrics decreases, the overall delivery time drops slightly, to about 6 days.
Outlook
Polyester prices are on sale again this week, and polyester manufacturers are continuing to stop operations and reduce production. The current market situation is not very optimistic. Polyester prices may continue to fall in the future, and the market situation may continue to be deserted next week…
</p
