“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.

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.

“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.

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.

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.

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

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.