On July 25, the US Chemical and Engineering News (C&EN) announced the list of the top 50 global chemical companies in 2022 (hereinafter referred to as the list). The top three companies remain unchanged. BASF is still the world’s largest chemical manufacturer, Sinopec is second, and Dow is third. Among the top 50 chemical companies in the world, 9 Chinese chemical companies are among the top 50 in the world. Hengli Petrochemical ranks 12th, Rongsheng Petrochemical ranks 27th, Tongkun Group ranks 48th, Hengyi Petrochemical ranks 50th, and the chemical fiber leader accounts for Nearly half.
The investment value of chemical fiber companies is increasing day by day
Already accounts for half of the chemical industry
Currently, China’s chemical fiber industry has become, and will continue to become, an important source of high-quality listing resources to our country’s and even the global securities markets. The group characteristics and trends of China’s chemical fiber listed companies are changing day by day. They have experienced pain, cultivation, redemption, adjustment, transformation, acceleration… and their industry investment value is also increasing day by day. Judging from the specific situation of enterprises, enterprises that implemented a balanced upstream and downstream integrated development strategy earlier have demonstrated good competitive advantages and risk resistance in the process of coping with this severe market situation.
In recent years, the polyester (filament) industry has accelerated into a stage of large-scale and integrated development. Large enterprises are constantly seeking to expand and open up the entire industrial chain to reduce the impact of market fluctuations on corporate operations. Such a development strategy strengthens the competitive advantages of integrated enterprises in the industry and reduces the impact of industry cycle fluctuations on corporate profits.
At present, four companies have successfully extended their development to the refining end, solving in one fell swoop the bottleneck problem at the raw material end that plagued the development of enterprises. These leading companies are not only the largest polyester filament staple fiber production capacity, but also the largest upstream raw material end PTA and PX.
After the vertical integration of the upstream and downstream industrial chains is completed, the downstream industry links will in turn be required to continue to expand in scale and require greater downstream production capacity to support digestion. Currently, the top six polyester filament companies in the industry are Tongkun and Xinfeng. Ming, Shenghong, Hengyi, Hengli, Rongsheng, etc. have all developed downstream to varying degrees. my country’s polyester industry is deepening the large-scale development of the entire industry chain.
The layout of the whole industry chain of leading enterprises
Conventional filament factories and small and medium-sized weaving factories have become the “bullseye”
In the context of leading companies with integrated advantages, although this year has been affected by the epidemic, these companies have clear strategic ideas, and project production and new project construction are fully advancing. The survival space of enterprises that mainly focus on conventional filament production is getting smaller and smaller. Especially under the impact of public health events, consumption has declined, and traditional production enterprises are facing severe challenges.
In the post-epidemic era, the chemical fiber market has begun a new round of reshuffle. The market polarization has intensified and the head effect has become increasingly obvious. For the polyester industry chain, the “crux” of the industry is mainly reflected in the dual pressures of high costs and low demand. High inventories, low profits, and low loads have become the norm in the industry this year, accelerating the process of industry reshuffle, and some companies have been forced to exit.
Since the beginning of this year, affected by the epidemic, a large number of textile orders have been delayed and canceled, which has brought many difficulties to the production and operation of textile companies. Affected by the market, many companies are forced to join price wars and fall into the abyss of losses. The more they produce, the more they lose. But when the machines stop, rent, machine depreciation, and basic living expenses for workers are all expenses. Next, the leader The entire industrial chain layout of polyester companies, especially for the downstream small and medium-sized enterprises, will have a particularly severe impact!
With the release of PX production capacity in private refining and chemical projects, large leaders are focusing on building a deeply integrated development model of ‘crude oil-aromatics (PX) and olefins-PTA and MEG-polyester-spinning-texturing’. Jinghe strengthens the downstream, promotes more and more refined technology research and development lines, and more and more unique skills, competitive products and professional fields, achieves efficient penetration and deep links from raw materials to processes to the market, and continues to develop industries with scale advantages and leading levels. The business growth point is to continuously move towards the development direction of a world-class petrochemical new materials enterprise with a full industrial chain. At the same time, with the gradual withdrawal of old small and medium-sized production capacity in the polyester market, the market share of “head” companies continues to increase, and the degree of centralization of the polyester market further increases.
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