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

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.

Shengze textile industry “beautiful scenery”

27 domestic precipitated silica price stability, Zhuzhou booming chemical price 4600 yuan / ton, compared to the previous price unchanged, factory sales, inventory is low, the market is weak, the upstream raw material prices, most manufacturers to wait and see.

In December 27th, Shandong million new material silica rubber products price stability, method of precipitation (325 mesh) offer 3600 yuan / ton, manufacturers of normal production, the market is OK, the general sales price stability. Fujian Jufeng Sanming Chemical silica price stability, price 3800 yuan / ton, manufacturers of normal production, sales, inventory is low. Liaocheng Yunchang silica Co., precipitation method, price stability, rubber grade precipitation method (325 mesh) ex factory price of 4550 yuan / ton, manufacturers of normal production, the weak market demand, sales in general. Dongguan Chan Yu chemical precipitation method white carbon black rubber grade price stability, price 4400 yuan / ton, grade silicone manufacturers offer 6400 yuan / ton, normal production, low operating rate, weak market demand, sales in general. Dongguan Chan Yu chemical precipitation method white carbon black rubber grade price stability, price 4400 yuan / ton, grade silicone manufacturers offer 6400 yuan / ton, normal production, low operating rate, weak market demand, sales in general. Zhuzhou is booming chemical precipitated silica gel product price stability, price 5500 yuan / ton, rubber products offer 4100 yuan / ton (including tax), manufacturers of normal production, sales general.

The rubber products (80-600) in price between 3200-4800 yuan / ton, silicone products prices in the 5500-6400 yuan / ton.

Recently, white carbon black market trading, factory sales, inventory is low, the upstream raw material prices, most manufacturers to wait and see, is expected in the short term precipitation grade silica price stability.

1, EU to China three cyanuric acid anti-dumping sunset review investigation
In December 20, 2016, the European Commission announced that Ercros S.A. and Inquide S.A. on behalf of three chloro isocyanuric acid production of similar products in the EU accounted for more than 25% of the total output of the EU manufacturers in September 30, 2016 to apply for the European Commission, originating in the Chinese three chloro isocyanuric acid (trichloroisocyanuric acid) initiated anti-dumping sunset review investigation.
2, China and the United States Potassium Permanganate made the preliminary anti-dumping administrative review

In December 13, 2016, the U.S. Department of Commerce announced on imports from China Potassium Permanganate (Potassium Permanganate) made the preliminary anti-dumping administrative review: a preliminary ruling involved product export price lower than the normal value of dumping, weighted Pacific Accelerator Limited ruled Chinese exporters the average margin of dumping is $4.03 / kg; Chinese general tax rate of 128.94% remained unchanged. The coordination of products in the United States tariff number is 2841.61.00. The administrative review of dumping investigation period from January 1, 2015 to December 31, 2015.
3, Brazil, China PET resin made final anti-dumping and taxed

Brazil Foreign Trade Commission issued Resolution No. 121st in 2016 in the official journal in November 28th, PET resin for originating from the Chinese (MERCOSUR tariff 39076000) make a final anti-dumping, and imposed definitive anti-dumping duty.
4, the United States changed the “R-134a preliminary anti-dumping
In December 1, 2016, the U.S. Department of Commerce announced amendments to the China imports from 1, 1, 1, 2- tetrafluoroethane (R-134a) anti-dumping preliminary results, including mandatory respondent companies Zhejiang Sanmei chemical Limited by Share Ltd

(ZhejiangSanmeiChemicalIndustryCo., Ltd.) and Jiangsu Sanmei Chemical Co Ltd (JiangsuSanmeiChemicalsCo., Ltd.), all China exporters / weighted production taking the average margin of dumping were revised to 232.30%.
5, India’s anti-dumping investigation of Resorcinol
In October 13, 2016, India should be the only manufacturer M/s Atul resorcinol Limited application, India Ministry of Commerce and industry of China from resorcinol and Japanese imports (resorcinol) to start anti-dumping investigation, the case involving products under Tariff No.

29072100. Dumping investigation period is April 1, 2015 ~2016 year in March 31st, damage survey period for the April 2012 ~2013 year in March, April 2013 ~2014 year in March, April 2014 ~2015 year in March, April 1, 2015 ~2016 year in March 31st (period of investigation).
6, EU anti-dumping duties levied on China oxalic acid

Honeywell launched a new business unit, designed to provide materials for chemical research.
Honeywell claims that the new Department of chemical research, will provide application materials reagent solvents, analytical testing and drug research and development.
The department focused on providing highly customized solutions for R & D personnel, including supply chain innovation solutions and e-commerce convenient operation, but also on-line a procurement site to facilitate faster management of inventory.

Company personnel said that market changes and consumer trends, especially in the field of air quality and food safety, greatly changed the chemical research in recent years.
Verhaeghe, general manager of the new Department Arnaud said in a statement: customers are looking for reliable suppliers, from small-scale development to the final production process, can cover the entire research process.
Chemical research departments will include both solvent products and inorganic chemicals purchased from Sigma-Aldrich at the end of last year.
New business by Honeywell fine chemical part tube, there are four product portfolio, address is located near Hannover, germany.

Support existing enterprises, strong subjects. Based on household appliances, machinery, textile and other industries demand of the city and surrounding areas, to promote the “backbone enterprises existing two centers” in promoting the technical equipment transformation, expand production capacity, expand the scope of business, economic development custom. Vesun metal, three Peng technology company, there are 10 electroplating production line, 2 coating production lines, 2 galvanized production line and supporting welding, wire drawing, mesh, mesh production line will be installed in place, after the completion of all,

the annual processing capacity of up to 200 million square decimeter surface, is expected to achieve 600 million the annual output value of yuan, can provide supporting services for tens of billions of yuan of home appliance industry. With an annual output of 25 thousand tons of high-grade Qunying textile knitted fabric dyeing and printing production line technological transformation project is completed, the new dyeing and printing production line domestic advanced 2, preparatory work is the new standard fiber horse of the year processing 3000 tons annual processing of 2000 tons of polyester fiber and yarn production line project is being carried out, will greatly improve the processing capacity of existing printing and dyeing enterprises.
Integration of surrounding enterprises, do excellent matching. Currently, the two centers within the planning scope of the “seven links and one” supporting construction has been in place, sewage treatment plants to achieve normal discharge standards, the annual disposal of hazardous waste incineration center and landfill center 20 thousand tons of normal operation. The park will be combined with the development of the city’s industrial capacity, according to the center planning and construction by stages, making the project clean-up plan, gradually relocated surrounding non industrial chain enterprises, or to promote the transformation of development, to revitalize the planning within the scope of land, located in liuzu development space for the construction of supporting facilities and projects.
Carry out related investment, do full functionality. Around the center of related industries, continue to carry out related enterprises and institutions of the investment work, metal surface treatment center by the government unified overall planning, supporting the project industry list menu, will center planning into several units, each unit of the development and construction of clear requirements, adopt flexible and various models to attract enterprises, do independent construction,

management and operation. Textile printing and dyeing center fully reserved project development space, according to the development needs of related industries, the implementation of point to point precision investment. According to the city’s major textile project development needs, the implementation of supporting printing and dyeing projects for the ground, because the project one discussion, focusing on market-oriented, entrepreneurial, improve the quality and efficiency of industrial development.