Another 3 million tons/year PTA project announced the latest progress!
According to a recent report from Yizheng, the 3 million tons/year PTA project of Sinopec Yizheng Chemical Fiber Co., Ltd. is under piling construction. As planned, the civil construction will begin in May this year, the installation and construction will be completed in May next year, and the project will be put into operation in August.
It is understood that on July 22, 2021, the civil engineering work of the main device of Yizheng Chemical Fiber’s annual output of 3 million tons of PTA project started, kicking off the construction of the device with the largest single investment in the 43-year history of Yizheng Chemical Fiber. After the project is completed, it will Promote the development of new material projects such as Yizheng Chemical Fiber, smart fibers, and biodegradable materials, double the output value, and create a “new Yizheng” in five years.
At the project site, Wan Tao, Secretary of the Party Committee and Executive Director of Yizheng Chemical Fiber, said, “The comprehensive energy consumption of the two PTA units currently in operation at Yizheng Chemical Fiber is 100 kilograms of standard oil. The newly built 3 million tons of PTA adopts the most advanced technology in the world. The design value is converted to only 20 kilograms of standard oil, the energy consumption level has dropped significantly, and the pollutant emissions have also dropped significantly.”
PTA production will still be at its peak in 2022, and an additional 14 million tons of new production capacity is expected to be put into operation throughout the year.
The downstream polyester production capacity is planned to be 7.1 million tons, but the devices are numerous and scattered, and the concentration is not as high as the upstream raw materials. The plan and the actual progress are quite different. Judging from the actual production of polyester in the past three years, it has basically stabilized at around 4 million tons, which is far lower than the growth rate of upstream PTA. Therefore, the PTA supply side will be more severe, and old devices will lose their competitiveness in the future. In 2020 and 2021, new parking capacity will be added by 2.19 million tons and 5.44 million tons respectively.
In recent years, the scale of PTA units put into production in my country has basically exceeded 2 million tons. At the same time, the large number of new units means that the overcapacity of PTA will further intensify in the future, and it also determines that its price will run around the cost line in the long term. Compared with the newly put into operation large upstream and downstream integrated devices, the original small-scale devices with a capacity of about 1 million tons will gradually lose their competitiveness. Under the pressure of overcapacity, some backward small devices may be shut down. my country’s PTA industry may Ushering in a new round of industry consolidation. Among many competitors, leading companies have outstanding advantages.
First of all, for leading companies, since they already have a certain production base, the cost of investment in production expansion is relatively low. For example, the fourth and fifth PTA production lines of Hengli Petrochemical both have a scale of 2.5 million tons, and the investment amount for each line is about 3 billion yuan. The total investment of Yisheng New Materials’ new 6 million tons PTA project is estimated to be 6.731 billion yuan. , while the total investment in the environmental impact assessment of Fujian Baihong’s 2.5 million tons PTA plant is as high as 5.72 billion yuan.
Secondly, PTA’s core cost competitiveness lies in equipment and processes. It is a typical late-comer advantageous industry. The later the device is put into production, the lower the cost will be. In the past ten years, the marginal processing cost of PTA has dropped significantly from 1,000 yuan/ton to about 500 yuan/ton, mainly due to the economies of scale brought about by large-capacity technology and the improvement of process technology.
Take the Hengli Petrochemical PTA production line as an example. It adopts INVISTA P8 technology, which reduces material and energy consumption. It is estimated that the ton processing cost will be saved by about 100 yuan/ton, which is about 20% lower than the current lowest ton cost of PTA. Therefore, in the context of increasingly fierce competition in the industry, the advantages of leading companies have become increasingly prominent. In the future, the output of new devices in the industry will also gradually squeeze out the older batch of devices with backward technology and higher cost. In the future, the PTA industry is expected to only belong to integrated devices with more advanced technology and lower cost, and large-scale PTA with a capacity of more than 2 million tons. device.
At present, my country’s PTA industry has developed to a high level. To achieve healthy development, the PTA industry must continue to undergo changes. In order to adapt to the new requirements of the new situation in the industry, it must face new technologies, new patterns, and new competition zones. To meet the new challenges coming, in accordance with national requirements, to achieve high-quality development of the industry, advanced technologies must be adopted to ensure that enterprises remain invincible in the competition.
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