New Production Has Exceeded Expectations! The New Polyester Production Capacity In The First Half Of The Year Was 2.93 Million Tons, And The Industry Leaders Were Very Desperate!

The first half of the year passed quickly. In the past six months, the polyester chemical fiber market has experienced a wave of the most powerful test. The industry has always been closely attached to the label of high inventory, low production and marketing, low construction, and tight cash flow. The price of polyester filament once fell to a new historical low. However, the market competition of the whole industry has also upgraded again, and the market is becoming more and more concentrated to a few giant enterprises with advanced technology and obvious capacity advantages.

Looking at the textile chemical fiber industry chain this year, with the leading enterprises' influence and control over the industry significantly enhanced, more fierce wars appeared in the competition among these enterprises. With the acceleration of private refining chemical integration at the beginning of the year and the start of the petrochemical integration project of the polyester factory, all of them proved that the industry leaders have made full use of their strength! We might as well take a look at the production projects of several leading polyester enterprises.

1. Recently, Xinfengming announced a new development plan. After expanding PTA upward, it finally started to develop into staple fiber and film horizontally. The production capacity of 2 million tons should be a significant one in the staple fiber industry.

　　 According to the incompletely counted capacity, this is also a leap forward capacity multiplication plan.

Estimated capacity of Xinfengming:

　　 2. Another 500000 ton differential FDY transformation project of Hengyi subsidiary was put into production, which is a typical example of the local redevelopment of old production capacity after the inventory. Hengyi has successfully entered the Jiangsu market through capacity integration, with Taicang base in the south and Suqian base in the north. At the same time, it has expanded its capacity based on the existing capacity in the Fujian market, and has entered the Tongkun and Xinfengming headquarters through the integration of Jiaxing Longteng and Haining base construction.

Hengyi estimated capacity:

　　 New production of the industry has exceeded expectations! New polyester production capacity of 2.93 million tons in the first half of the year

In the first half of 2020, the total new production capacity of domestic polyester will be 2.93 million tons, of which 1.2 million tons of polyester filament will be put into production, accounting for 41% of the total new production capacity of polyester; By contrast, in 2019, the newly increased domestic polyester output totaled 1.37 million tons, of which 530000 tons were newly put into production of polyester filaments, accounting for 38.7% of the total newly put into production of polyester in that year. By contrast, although the overall economic and terminal demand background in 2020 has dropped significantly compared with 2019, the growth rate of polyester and polyester filament production capacity increased significantly over the same period.

　　 On the one hand, based on the industrial layout of domestic leading polyester enterprises accelerating refining and chemical polyester integration, on the other hand, from the perspective of the group where the production units belong, they are basically the top five enterprises with polyester filament production capacity. Leading enterprises have strong capital and risk control capabilities, and further improve the industry share through their own enterprise strength expansion under the not optimistic supply and demand pattern, Squeeze the survival space of small and medium-sized enterprises; Moreover, most of the products put into production are unconventional products with certain differentiation. Therefore, even though the imbalance between the supply and demand of polyester filament was relatively significant in the first half of the year, the leading enterprises were still "going against the trend" to implement the previous production plans from the perspective of the long-term strategy of the industry.

On the whole, leading enterprises have made new production in the industry perform better than expected through strong risk control and financial strength.