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December 30, 2016 chemical industry news overview

[hot] Gade chemical network daily

“Chemical rebound, PP can return to the high point?

“Coal chemical business situation differentiation industry called for speeding up the urea futures market

“The integration of automotive battery industry coming high quality battery capacity is not excessive

>>2017 methanol demand exists time lag, methanol or after the first strong weak

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>>2016 is the commodity bull market annual plastics futures prices higher oscillation

“Alcohol market supply situation will continue to rise the price of methanol is expected to surge

Industry news

Chemical industry rebounded sharply, PP can return to the high point?

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Abstract: at present, the domestic petrochemical PP device to maintain normal production, drawing ratio remained at 27%-30%. The demand side, just need to stabilize the market, the woven industry operating rate remained at around 65%, industry co operating rate of 64%, the operating rate of BOPP industry to maintain a good, but look at the PP upstream, midstream and downstream from the overall, from the current point of view is from the low to pick up the. See details []

Coal chemical business situation differentiation industry called for speeding up the urea futures market

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Coal chemical business situation differentiation industry called for speeding up the urea futures market

Recently, listed companies Chitianhua announced yesterday, is expected 2016 loss of 300 million to 360 million yuan.

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Notice that, in 2016 the company chemical business by the main raw materials (coal) the dual impact of rising costs and urea, methanol prices continued to slump, operating profit decreased significantly. At the same time, the company intends to make provision for impairment of gas head urea production device and its related assets involved.

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In the industry view, Chitianhua 2016 substantial losses, mainly due to the production of urea on coal chemical industry segments reflect the operation situation of differentiation. It is understood that this year, the domestic coal market rose in price, in the raw materials rising coal prices, part of the downstream coal chemical industry performance is still brisk, many coal enterprises become a new profit growth point.

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In this all the way to visit, thank PTA manufacturers is the common aspiration of many polyester companies

In this all the way to visit, thank PTA manufacturers is the common aspiration of many polyester companies. In recent years, some manufacturers none PTA that polyester enterprise has obtained the “breathing” opportunity.
Reporters learned that, out of the need to eliminate backward production capacity, PTA leading enterprises to adopt a low price strategy, the price of PTA will be maintained in the vicinity of the cost line, in order to eliminate the scale does not have the effect of small plants. In this case, even if commodity prices rose this year as a whole, PTA prices remain relatively weak pattern.
“Although this benefit is passive, but can not be denied due to the upstream raw material prices are low, the polyester business profits this year with security, improved operating conditions.” Huang Liqiang said.

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In the whole PX – PTA polyester industry chain, the source is crude oil, the upstream is PX, the middle reaches of the PTA, the downstream polyester, the terminal is chemical fiber textile. Due to their different supply and demand, the right to speak in the middle and lower reaches of the industry chain is also different.
It is understood that, due to increased pressure on environmental protection, PX a small number of new capacity, combined with a longer production cycle, the domestic PX production growth is significantly lower than the growth rate of PTA capacity. This led to a large number of domestic imports of PX, in recent years, the increasing dependence on imports of PX, PX industry in the entire industry, the strongest bargaining power in the industry chain profit is mainly concentrated in the PX industry.

PVA 0599 (PVA BF05)

Can also be seen from the last two years, in the PX – PTA – polyester industry chain supply and demand pattern, PX relatively strong, in the whole industry chain profit distribution accounted for the bulk; PTA supply is relatively loose, the overall cost pricing, price relatively passive; polyester market similar to PTA, in a relatively weak position in the whole industry chain pricing, often in low profit or even losses.
Often the whole industry chain prices, the upstream raw material PX rose the most, eroded some of the profits of the PTA industry, PTA prices rose again with the rise in prices of polyester products.” Wang Guangqian said, but because of less than PTA, polyester production profits have been compressed, and even the last loss of polyester production, shrinking demand situation, and then dragged down the PTA market demand and product prices. PTA production profits have been compressed again, the maintenance of their own compressed PX maintenance needs, PX strong supply and demand reversal, dragged down PX prices, thereby easing the downstream PTA and polyester cost pressures.

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Unlike in the past, the second half of this year, especially after October, the terminal needs to release part of the pattern of supply and demand to improve the polyester, profits rose sharply, to further promote the PTA and PX market demand, the price and profit also showed a slight expansion of the situation. This situation and the usual cost to promote the rise of different, more persistent than in the past.
In this research, the reporter learned that, in the downstream polyester high profits after the link to see, part of the PTA plant may be active contraction of the downstream polyester plant contract goods supply control, the proportion of traders and downstream polyester plant with PTA supply arbitrage operation reduced to a certain degree of control of the entire market, none of the previous strategies or adjustments. Part of the PTA plant in 2017 PTA production profits should be improved.
At present, polyester downstream weaving enterprises gradually changed from centralized stocking to rigid procurement. With the Spring Festival approaching, the downstream textile enterprises will start to load or fall to the freezing point, driven by further decline in demand.

PVA 1799 (PVA BF17)

But from the survey situation, each enterprise load adjustment is different, some enterprises at the end of their own parking maintenance program, as well as some enterprises as long as there will be a high load of workers.
During the Spring Festival this year, there will be room for polyester operating rate of decline, but given the current situation of production and operation is better, the situation of large-scale parking overhaul or difficult to reproduce in the past.” Wang Guangqian believes that from the demand perspective to judge at the end of the year, polyester price or fall or market consolidation.

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“Sunrise million silk, clothing the world”, Feng Menglong’s “awaken” in the Ming Dynasty

“Sunrise million silk, clothing the world”, Feng Menglong’s “awaken” in the Ming Dynasty, Shengze silk city prosperity had been mentioned.
Today, known as the “silk China known as the” first town of Shengze has been formed from silk and chemical fiber spinning, weaving, printing and dyeing, fabric processing to the clothing industry chain. In Shengze, on both sides of the road all kinds of textile, printing and dyeing, weaving factory has become a beautiful landscape.

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The reporter learned that Shengze textile industry cluster advantages, to Hengli Group, Shenghong group, Wujiang Chemical Fiber Co., Ltd. Jiangsu Xinmin textile Polytron Technologies Inc and a number of large enterprises as a leader, formed in the textile enterprises cluster Chinese textile industry influential. The textile industry is also radiation to the surrounding areas, the formation of a Shengze as the center, including Jiangsu, Zhejiang, many neighboring towns of the textile industry base. Shengze is not only the largest textile industry base in China, but also the distribution center of chemical fiber fabrics.
During the visit, the reporter found that this year, Shengze textile industry autumn and winter market is particularly long. Some manufacturers believe that the printing and dyeing industry in Shaoxing is mainly affected by the impact of environmental protection, the elimination of backward production capacity, part of the order transferred to Shengze, making this season particularly busy. There are some manufacturers believe that this year the market is a good domestic market orders, like imitation memory, surrounded by these shells become a hot market products. Near the end of the year, the four sides of the plant dyeing fabric market is still hot.

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“Shengze is the distribution center of chemical fiber fabrics, many enterprises are based on order production, covering the export market, the domestic market is relatively strong seasonal, relatively stable export market orders.” Wu Xiaofen introduction, this year, PTA several large devices did not restart, the new device is not a large number of polyester production, polyester fundamentals better than in previous years. In addition, this year, the right to speak of polyester manufacturers more concentrated than ever, the ability to control the price has been greatly improved.
In addition, one of the more important reason is the downstream product demand. In terms of Shengze, in October this year, in November, dyeing plant business has been busy, fabric orders arrived at a high operating rate, the demand for polyester filament continued to improve.
From the beginning of September, the chemical fiber industry has been better.” Sheng Hong group, the relevant person in charge told reporters that this year, the downstream consumption, sports and leisure brand sales is very gratifying, a few years ago, the stock has accelerated digestion, terminal brand sales of 5% – 10% growth. At the same time, foreign consumption also showed a synchronous growth, directly driving the domestic textile industry to enhance the consumption capacity.

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Why polyester terminal will focus on this stage of explosive growth in the above person in charge, on the one hand, the rise in raw materials is unexpected, the domestic commodity prices are up, freight is also up. In such an environment of rising costs, the second and third quarters of the order ahead of the release. In addition, in recent years, the polyester market oversupply situation, after the elimination of competition, the supply and demand balance.
Manufacturers optimistic about the market outlook
In this research, polyester production enterprises in Yangtze River Delta region responsible for investors generally cautious optimism, this year the production and operation situation improved obviously, very price emboldened than the foot. It is worth noting that, despite the current polyester slice, staple fiber, filament production and operation stability, but the segments appear to be some differentiation. Such as staple fiber enterprises recently by price of cotton textile enterprises, and reduce the weak order approach of the Spring Festival and other factors, relatively few orders. Due to the current inventory level of filament is very low, some oversold phenomenon, in the hands of the order is acceptable, production operating profit level is good.
The production of weaving enterprises still have profit, the boot load is higher than in previous years, the polyester polyester raw material stocking was sufficient, but worried that foreign trade orders can withstand the pressure of raw materials prices rose sharply after the spring festival. Printing and dyeing enterprises due to close to the terminal, in the vicinity of the Spring Festival holiday time node, the current orders can be produced about a week, the new orders are also better.

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The reporter learned that, as the current industry downstream section, polyester bottle sheet, filament and staple fiber problems, namely the price of crude oil rose from rising costs of the contradiction between the pressure and the terminal demand conduction. Although since September, polyester prices strong performance, but this is due to rising costs, inadequate supply of funds and other factors. With the arrival of the consumer off-season, polyester oversupply problem will gradually appear, and the part of the terminal consumer products is not ideal, the price downward conduction is smooth, the polyester industry is the main concern.” Huang Liqiang said.
It is worth mentioning that the investigation feedback results, this year PTA and MEG raw material prices sharply higher, polyester enterprises will not only cost conversion, but also its supply and demand pattern to improve the situation get excess profits.
“Since the G20 Summit on the release order, after the first few years of the elimination of backward production capacity after industry is also in good condition on the costs of supply and demand, improve the ability of terminal weaving enterprises, coupled with its own profit can, can also absorb some of the rising costs of.” Wang Guangqian said that in the face of the current round of raw material prices, the end of the relatively smooth transfer of corporate costs.
At present, slice, fiber and filament no big problem, but the downstream textile enterprises early raw material stocking was sufficient, years ago may demand overdraft, demand may be slowed sharply late.
According to a relevant person in charge of the enterprise, the current inventory of raw materials and hand orders are arranged for a month or so, the short term sales pressure is not. “The order to hoard goods, not because of the rise of raw materials to increase the inventory of raw materials.” The official believes that the current price of FDY to see, now do still have a profit to sell, but the problem is that the new order is not ideal. Foreign customers will not because of China’s raw material prices rose and additional orders, is currently in a stalemate state.
Due to the depreciation of the exchange rate of other currencies in addition to the U.S. dollar is greater than the RMB, that is, non US currencies relative to the devaluation of the RMB, the corresponding increase in the cost of imports. Domestic chemical fiber raw materials and other accessories prices rose sharply after the Spring Festival, the cost of foreign trade orders or transfer capacity will be weak. In addition, the stability of employees and recruitment problems make weaving enterprises some concern.

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For the stability of staff concerns, printing and dyeing factory also has. Shengze, a printing and dyeing factory staff in exchange with reporters admitted that the company is currently earning a processing fee business model, but faced with increasing pressure on environmental costs, staff stability is also uncertain factors.
Upstream subsidies downstream situation or change

Polyester market sentiment rebounded significantly on the market has been rising prices

Inventory decline profit rebound
Compared with previous years, this year, the pet industry inventory at a historic low, profits in recent years, the best level. December 19 – 22, futures Daily reporter visited the Yangtze River Delta polyester industry chain related enterprises. The reporter found that, although the Spring Festival approaching, but the production order and operation rate has not decreased significantly, the production has a busy scene, before a few years of operating losses “haze” swept away.
Polyester market sentiment rebounded significantly
In mid December, many domestic textile enterprises have encountered a big problem: high raw material prices. From Suzhou City, a textile company in Shengze for nearly a month’s report can be seen, the polyester factory offer almost every day 100 – 300 yuan / ton up. For textile enterprises, the first day of hesitation, the second day of price increases, and the price of the third day, and the fourth day to buy but not the goods…… Rising prices have committed downstream polyester.
In fact, from September of this year, the polyester market has been the emergence of another round of rising prices.
“During the September G20 summit, Jiangsu and Zhejiang polyester factory of large-scale centralized parking maintenance, leading to a rapid decline in the supply of polyester. The rapid release of the terminal orders after the G20 summit, boosted the demand for polyester products, polyester supply and demand pattern improved polyester production profit recovery.” Soochow futures analyst Wang Guangqian said that at the same time, polyester raw material prices MEG pull up directly at the end of September, the price of PTA is also rising oscillation at the end of September. In the cost push up the expected effect, the downstream enterprises to speed up the pace of replenishment of polyester raw materials, resulting in polyester enterprise finished goods inventory decreased rapidly, polyester product prices also will rise continuously, polyester production and sales, profits and market economy gradually rise.
Analyst Wu Xiaofen also found that the second half of this year, the polyester market season than in previous years has been extended. She told the daily news reporter, in September this year, the impact of the G20 summit, the fabric market in autumn and winter orders in general, polyester filament market is relatively flat. After October, the concentration of fabric orders arrived in the middle of the month, driven by the rise in crude oil prices and improved sales, polyester filament prices rose strongly, there has been a wide range of price increases.
“The fourth quarter of this year, the focus of a rebound in prices of polyester raw materials, crude oil price, the conference also support polyester manufacturers an important factor of polyester filament prices strong.” Wu Xiaofen believes that in the common role of the upstream and downstream, with polyester filament as the representative of the polyester raw material prices rose sharply, some raw materials such as polyester, nylon and other prices rose more than 30%.
Longzhong information data show that as of now, East China semi gloss polyester chip price is 7725 yuan / ton, compared to September 23rd rose 1575 yuan / ton, up 25.61%; Jiangsu Sanfangxiang polyester bottle factory price is 8100 yuan / ton, compared to September 23rd rose 1400 yuan / ton, or 20.90%. Polyester filament, polyester filament in East China POY150D/48F price of 8800 yuan / ton, compared to September 23rd rose 2000 yuan / ton, up 29.41%; East China polyester filament FDY150D/96F price of 9750 yuan / ton, compared to September 23rd rose 2150 yuan / ton, up 28.29%; East China polyester filament DTY150D/48F price of 10450 yuan / ton, compared to September 23rd rose 1825 yuan / ton, up 21.16%; polyester staple price for 8700 yuan / ton, compared to September 23rd rose 1900 yuan / ton, or 27.94%.
Industry profits are at a high level

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With the gradual rise in market sentiment, polyester industry production turnaround. Up to now, polyester production profit of nearly 260 yuan / ton, is the industry’s high level in recent years.
Currently, polyester stocks in the year is absolutely low, lower than last year. On the one hand, manufacturers of polyester before the Spring Festival, more willing to buy used with low inventory strategy; on the other hand, the downstream season has not yet ended, short-term oil prices strengthened PTA good expectations, strong willingness to buy downstream enterprises, the existing polyester inventory to get a better digestion.
In fact, this year there have been continuous polyester terminal products out of stock of the situation, the FDY product has been oversold, downstream knitting enterprise finished is oversold.
“Polyester and the end market appears oversold stock phenomenon is affected by the influence of the G20 summit, part of the order after the shift and focus on the release of the La Nina winters are expected to drive the release of a large number of terminal business orders.” Wang Guangqian said that this year the polyester enterprises at the beginning and during the G20 summit of the parking overhaul operation scale, polyester production base is low, resulting in the stock market supply and demand to reverse the pattern of continuous decline, which exacerbated the market prices of “self strengthening” expectations, and thus stimulate the terminal rigidity and speculative purchasing demand concentrated release.
In addition to the above factors, in the view of Jinshi futures analyst Huang Liqiang, this year the polyester market appears oversold phenomenon is mainly caused by inflation expectations. “Generally speaking, when the goods fall into the cycle of time, although the price is even low, but in leading the panic, the market bearish outlook, procurement is not positive. This shows oversold polyester market, in the impact of inflation expectations, the market believes that the polyester rise cycle has come, the market outlook is expected to continue to rise. Therefore, the downstream polyester enterprises actively stocking, polyester demand will pick up.” Huang Liqiang said.
According to Wu Xiaofen introduction, in the face of polyester filament wave after wave of price surge, downstream manufacturers stockpile actively improved, operating rates remain high, the concentration of stockpile polyester inventory decreased significantly. In addition, due to the downturn in the domestic market in previous years, polyester manufacturers are also actively exploring overseas markets, export has become one of the channels of diversion polyester production.

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Shengze textile industry “beautiful scenery”