With the rapid development of China’s economy in recent years, China’s polyester industry has gradually improved its global market position. Data shows that China’s polyester production has increased its global share from 43.54% to around 64.35% in more than ten years.
Global and Chinese polyester production from 2010 to 2020:
China is the largest producer of polyester in the world and consumption centers, while Jiangsu and Zhejiang are China’s main polyester production areas. As can be seen from the figure below, the polyester production capacity of Zhejiang and Jiangsu provinces accounts for approximately 77% of the country’s total polyester production capacity. Zhejiang is the largest production and sales province, and Zhejiang is mainly concentrated in Huzhou, Xiaoshao, and Ningbo, and the polyester industry layout is relatively concentrated. At present, the regional distribution pattern of domestic polyurethane has gradually formed four major sectors: first, the Yangtze River Delta region centered on Shanghai, where polyurethane raw materials and products currently account for half of the country; second, the Pearl River Delta region centered on Guangzhou, which It is a region with relatively developed domestic polyurethane products and foreign trade; the third is the Bohai Rim and Northeast regions centered on Huludao. The biggest advantage here is a strong chemical foundation, grand industrial planning, a wide variety of polyurethane products and large output; the fourth is Lanzhou. With the northwest region as the center, a downstream polyurethane product industry chain will be formed.
Production capacity of the top 10 polyester manufacturers in China (unit: 10,000 tons):
Currently The CR10 industry concentration ratio in the ester industry has increased from 54.2% in 2019 to the current 61.9%. According to statistics from industry consulting companies, CR10 is expected to further increase to more than 80% in 2023. According to the classification standards of industrial concentration by American economist Bain and the Japanese Ministry of International Trade and Industry, the industrial market structure is roughly divided into two types: oligopoly (CR10 ≥ 40%) and competitive type (CR10 < 40%). Among them, the oligopolistic type is further subdivided into extremely high oligopolistic type (CR10 ≥ 70%) and low concentration oligopolistic type (40% ≤ CR10＜70%); the competitive type is further subdivided into low concentrated competitive type (20% ≤ CR10＜40 %) and dispersed competitive type (CR10＜20%). Applying this theory, the current industrial concentration of China's polyester industry can be classified as low concentration and oligopoly.
In the current international economic situation, high industry concentration means that the comprehensive competitiveness of the industrial chain has been enhanced, and competition among enterprises has become increasingly fierce. 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, the competition in the polyester market will further intensify, the granularity of enterprise operations will be refined, and cost control will become more stringent. Polyester production enterprises will lengthen and broaden the industrial chain through horizontal or vertical integration, with large scale, strong strength, and supporting industrial chain. Well-established companies will have more say. Therefore, in the future polyester industry, brand effect and large-scale development will be important bargaining chips for companies to compete for the market. </p
