At present, the domestic polyester industry chain is in the stage of expansion and integration, especially the larger polyester companies in the industry, such as Tongkun, Rongsheng, Hengli, Hengyi, Shenghong, Sanfangxiang and Xinfengming, etc. It is constantly adding or acquiring polyester production capacity, and at the same time extending its industrial chain upstream and downstream.
On the 25th, Xinfengming announced that the 600,000-ton functional flexible customized staple fiber project invested and constructed by its wholly-owned subsidiary Huzhou Zhonglei Chemical Fiber Co., Ltd. has reached the conditions for production. The project is constructed in two phases. The first phase of the short fiber project with an annual output of 300,000 tons entered trial operation on November 15, 2021. After a stable trial operation in the early stage, the project has officially entered production.
After gradually stabilizing the polyester filament and PTA markets
Xinfengming seeks new growth points and expands product matrix
In recent years, developing into the upstream PTA petrochemical industry and building a PTA-polyester integrated industrial chain has become the main development trend of Xinfengming. After gradually consolidating the polyester filament and PTA markets, it is also actively seeking new growth points and expanding its product matrix. In June 2020, the company invested in the construction of functional flexible customized staple fiber with an annual production capacity of 2 million tons, functional differentiated fiber with an annual production capacity of 1 million tons and an annual production capacity of 300,000 tons under the “One Continent and Two Lakes” layout plan. The polyester film new material project will build a total of 7 sets of polyester staple fiber equipment, 3 sets of polyester equipment and 1 set of polyester film equipment.
It is understood that polyester staple fiber is a fiber obtained by re-spinning polyester into tows and cutting them. The equipment required is roughly the same as that of polyester filament equipment and both use melt direct spinning technology. Therefore, it benefits from the company’s polyester filament technology. With existing equipment and technology, Xinfengming has great development potential in the field of polyester staple fiber. In 2020, domestic spinning demand for polyester staple fiber was suppressed due to the epidemic, but it is expected to recover as the epidemic eases. The increased demand for sanitary products caused by the epidemic itself has also promoted the steady growth of demand for polyester staple fiber. In 2021, my country is expected to add 1.59 million tons of polyester staple fiber production capacity, with a capacity increase of 18.9%, and the average device load rate is high. Xinfengming, which has a cost advantage, has a good opportunity to increase its market share.
Hengyi, Hengli and other polyester filament leaders are grabbing dividends in the staple fiber market
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 and ushered in a new competitive landscape.
Polyester staple fiber is the second largest variety of chemical fibers in my country. 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 since this year, the expansion of the polyester staple fiber industry has accelerated significantly. According to predictions from relevant agencies, in 2021, the domestic melt direct spinning 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 in addition to the investment in the Xinfengming staple fiber project, Hengli and other companies also have plans to increase polyester staple fiber production capacity. 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, an analyst at SDIC Anxin Futures, pointed out: “Polyester short fiber production capacity with expansion plans is expected to be put into production around the end of this year. Judging from the current situation, many leading polyester filament companies are entering the short fiber industry. Overall, Look, 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.
Regarding the next development trend of the polyester staple fiber industry, an industry insider pointed out that from 2022 to 2023, my country’s polyester staple fiber industry will enter a period of rapid expansion. Large-scale chemical fiber companies have comprehensive advantages such as scale and integration. The commissioning of new integrated large-scale equipment will further intensify competition in the industry. It is foreseeable that the living space of small enterprises will be squeezed, some backward production capacity will be eliminated, and the polyester staple fiber industry will face a reshuffle.
</p
