Near the end of the year, there is news about the launch of new production capacity in the polyester staple fiber industry. On November 26, Xinfengming Group Co., Ltd. (hereinafter referred to as “Xinfengming”) issued an announcement announcing that the company’s wholly-owned subsidiary Zhonglei Chemical Fiber’s annual output of 600,000 tons of functional flexible customized short fiber project (Phase I) was put into production .
As one of the leading polyester filament companies, Xinfengming is currently involved in polyester staple fiber, which has attracted great attention from the market. So, how has the polyester staple fiber market been doing in the recent period? What is the next step for industry competition?
Filament faucet aims at short fiber
Since the beginning of this year, the scale expansion of the polyester staple fiber industry has accelerated significantly. One obvious feature is that leading polyester filament companies have joined the market competition.
According to reports, Xinfengming’s Zhonglei Chemical Fiber annual output of 600,000 tons of short fiber project will be constructed in two phases. The first phase of the 300,000 tons of short fiber project will enter trial operation on November 15, 2021. After a stable trial operation in the early stage , is now officially put into production.
The project adopts China Kunlun Engineering Co., Ltd.’s advanced low-temperature, refined and flexible “one head and two tails” melt direct spinning process technology. The spinning part adopts a number of special technologies, with advanced technology and well-equipped equipment. It is equipped with advanced spinning, winding and drafting equipment, as well as a fully automatic baling machine and an intelligent warehousing system. In terms of products, the project can provide high-end high-strength cotton, spunlace, vortex spinning, three-dimensional hollow, color fiber and other series of products according to customer customized needs.
Xin Fengming said that the company’s independently developed “5G+ industrial Internet platform” has built a full-process intelligent digital management system integrating production, warehousing and logistics, which has comprehensively improved the process technology, intelligent manufacturing and digital management of the polyester staple fiber industry. level.
Talking about the significance of the commissioning of the staple fiber project, Xin Fengming said: “This means that the company has achieved horizontal expansion on the track that previously focused on polyester filament production, filling the company’s gap in the field of polyester staple fiber. In the fiber field , the short fiber project was put into production, enriching the company’s product structure, realizing strong and complementary chains, and opening up an important link for the company to continue to promote the “PTA-polyester” industrial chain layout during the ’14th Five-Year Plan’ period. At the same time, it also marks the The company has formed a new pattern of differentiated and diversified products, injecting new vitality into R&D and innovation, and improving the company’s core competitiveness and industry influence.”
It is also understood that in the past two years, the polyester staple fiber production capacity of Hengyi Petrochemical Co., Ltd., the leading polyester company, has also increased rapidly. As of the end of 2020, its total polyester staple fiber production capacity was 880,000 tons, involving Suqian Yida New Materials Co., Ltd., Fujian Yijin Chemical Fiber Co., Ltd., etc.
It’s hard to be optimistic about the short-term market
For a period of time, my country’s polyester staple fiber market has experienced periodic ups and downs.
Data from China Fiber Network shows that in September, the market price of polyester staple fiber showed a rebound trend. Affected by the “dual control” and “power rationing” policies, the overall operating rate of the polyester staple fiber market has declined, and supply has been significantly reduced. At the same time, affected by the rising prices of crude oil, PTA, and ethylene glycol, the price of polyester staple fiber rose slightly. The average price of its products in September was approximately 7,056 yuan/ton, rising month-on-month. Since October, devices on the market have gradually resumed production, and the overall operating load of the industry has rebounded. In October, the domestic polyester staple fiber market price showed a trend of rising first and then falling. The monthly average price was about 7,975 yuan/ton, an increase of 919 yuan/ton from September. By late November, the sales of polyester staple fiber factory products were not good, and most of them were shipped at a profit margin, and the overall price was relatively weak.
“Overall, it is approaching the end of the year. The domestic demand market is gradually shrinking, and the foreign trade sector is hardly showing signs of improvement. It is difficult for the supply and demand of the polyester staple fiber market to improve significantly in the short term.” A polyester industry insider pointed out that it is expected that in the first quarter of next year , the polyester staple fiber industry will still have 300,000 tons of equipment put into production, the supply level will still be loose, and the market situation is still difficult to say optimistic.
It is understood that the production capacity of my country’s polyester staple fiber industry is currently mainly concentrated in the three provinces of Jiangsu, Zhejiang and Fujian. Among them, Jiangsu’s polyester staple fiber production capacity accounts for approximately 55% of the country’s total polyester staple fiber production capacity, and the combined production capacity of the three provinces accounts for approximately 88%. In the Jiangsu and Zhejiang markets, a number of leading short fiber companies have been formed, such as Yizheng Chemical Fiber, Sanfangxiang, Huaxi Chemical Fiber, and Huahong Chemical Fiber.
Relevant statistics show that as of the end of June this year, my country’s polyester staple fiber production capacity was approximately 8.44 million tons.
“It is expected that my country’s polyester staple fiber industry will enter a period of rapid expansion from 2022 to 2023. From the perspective of competition characteristics, large-scale leading polyester companies like Xinfengming have comprehensive advantages such as scale and upstream and downstream integration. They The addition of the company will further improve the scale, technical level and intelligent manufacturing capabilities of the polyester staple fiber industry. Of course, industry competition will also become more intense, and some backward production capacities will face elimination.” said the above-mentioned industry insiders.
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