Tongkun Co., Ltd., known as the “Wal-Mart among polyester filament companies”, is expanding its filament production capacity again. The company plans to spend 15 billion yuan to build a new base in Jiangsu, with the new growth yarn production capacity equivalent to one-third of the current one.
It is reported that Tongkun Co., Ltd. is the domestic chemical fiber leader. This year’s semi-annual report shows that the company has 4.2 million tons The annual production capacity of PTA, the polymerization capacity is approximately 6.4 million tons/year, and the polyester filament production capacity is approximately 6.9 million tons/year. It has ranked first in output and sales in the domestic and international markets for more than ten consecutive years, and is the domestic market for polyester filament. The market share exceeds 18%, and the global share is approximately 12%. In other words, the newly built 2.4 million tons of filament yarn project is equivalent to 34.78% of the existing production capacity.
The crazy acceleration of polyester faucets: 100% production throughout the year, 100% production and sales in the second quarter
At the end of 2019, my country’s polyester filament production capacity was approximately 38.33 million tons, and global production capacity was approximately 57.59 million tons. The new production capacity in the past two or three years has basically come from leading companies. Industry CR6 increased from approximately 44% in 2017 to over 55% in 2019.
According to CCFEI data, the total new production capacity in 2020 was 2.12 million tons, an increase of 5.53% compared with the domestic production capacity in 2019.
Industry insiders believe that the filament production capacity of leading polyester companies represented by Tongkun has been continuously expanding in the past few years. As of the end of 2019, Tongkun has 4.2 million tons of PTA The annual production capacity is 6.4 million tons/year for polymerization and 6.9 million tons/year for filament. The domestic market share is about 18%, and the international market share is about 12%. It has a large market say. At present, the company also has Hengchao’s 500,000-ton annual intelligent super-simulated fiber project and the Jiangsu Nantong Rudong Yangkou Port polyester integrated project with an annual output of 5 million tons of PTA and 2.4 million tons of polyester spinning projects under construction. It is expected that by 2023, the company The polyester filament production capacity will reach 9.8 million tons/year, continuously consolidating its competitive advantage in the market.
At the same time, due to the stable downstream customers and the continuous improvement of the company’s market share, Tongkun has always maintained a high operating rate, even in the second quarter of this year under the impact of the epidemic , the company’s actual production and sales rate still exceeds 100%, and it continues to seize market share. Under adverse circumstances, higher capacity utilization reflects the company’s higher management level and industry status. Tongkun Co., Ltd.’s annual report data also shows that, except for some of the new production capacity put into operation in 2019, the company’s rest of the filament production capacity has basically exceeded 100% annual operating rate, and the capacity utilization rate of some factories has even reached more than 140%.
From the perspective of the upstream and downstream industrial chain, the polyester industry belongs to the production and manufacturing of chemical fibers and belongs to the midstream manufacturing industry. The complete industrial chain is “refining-PX-PTA-polyester-weaving”. The upstream of the polyester industry is the petrochemical industry. The main raw materials are purified terephthalic acid PTA and ethylene glycol MEG. The downstream industry is mainly the textile and garment industry. Among the chemical fibers, the main raw materials of the textile and garment industry, the proportion of polyester reaches 60%. The downstream warp knitted fabrics in the polyester filament industry are highly dispersed, and the highly concentrated filament pattern creates leading bargaining power. High-quality products will enjoy more industrial premiums.
Tongkun Co., Ltd. has a very significant cost advantage in the field of POY filament production. The company’s product strategy is also focused on general-purpose products with the highest demand, which is different from several other leading domestic polyester companies that adopt differentiated competition strategies and focus on the production of FDY and DTY. Since 2015, the company’s POY filament products have always been at the leading level in the industry. After the second phase of Jiaxing Petrochemical was put into production in 2019, the company’s polyester filament upstream raw materials were matched, and the gross profit margin reached a higher level. The polyester industry is a labor-intensive industry. Leading companies often have more than 10,000 employees, while small and medium-sized enterprises often have thousands of employees, which places high demands on personnel management capabilities. In terms of labor costs alone, the company’s labor cost per ton of polyester yarn is around 150 yuan/ton, which is relatively low in the polyester filament industry.
As of 2019, there are 34 companies with polyester polymerization capacity of 400,000 tons/year and above. As of the end of 2019, the six major listed companies (Hengli, Tongkun, Heng Yi, Rongsheng, Shenghong, Xinfengming) PTA and polyester filament total production capacity accounted for 55% and 53% of the country’s total production capacity respectively.
Leading companies have more advantages in production capacity expansion due to their capital, technology and other advantages. Their market share will increase again in the future, and the leading industry’s voice will continue to strengthen. From the perspective of the source of production capacity, new production capacity is also mainly concentrated in leading companies, and it is expected that industry concentration is expected to further increase in the future.
According to data from CCFEI and Dongxing Securities, in the second half of 2020, there are still 7 new sets of equipment planned to be put into operation in the domestic direct spinning polyester filament industry, all of which are the expansion of production capacity of mainstream major manufacturers, with a total of The production capacity is about 2.4 million tons/year, including Hengyi’s 1 million tons/year, Xinfengming 300,000 tons/year, Tongkun 500,000 tons/year, Hengli 600,000 tons/year, and Shenghong 250,000 tons/year.
After it is completed and put into operation, it is expected that the CR6 of the industry will continue to increase to about 59%. The filament production capacity scale advantages of Tongkun Co., Ltd., Hengyi Petrochemical, and Xinfengming will become increasingly obvious, while Heng Li Petrochemical, Rongsheng Petrochemical, and Shenghong Group compete differentiatedly through upstream refining and chemical supporting facilities.
Judging from the planned projects from 2020 to 2022, the production capacity growth rate of the PX-PTA link in the upstream of the industrial chain is relatively high, and the growth rate of the polyester filament link production capacity has stabilized. In the future The three-year compound growth rate of polyester filament production capacity is approximately 5.4%.In line with the growth rate of terminal demand, the profitability of the PTA link will be suppressed. The successive commissioning of PX supporting projects will consolidate the integration advantages of the domestic polyester industry chain and seize the market share of Japanese and Korean PX factories.
The gap between small and medium-sized polyester yarn companies and leading companies has been further widened!
With the opening of the refining and chemical window, many leading polyester companies have extended their development to the upstream and improved the supply and demand structure of their own industrial chains. The gap between small and medium-sized polyester companies and leading companies has been further narrowed. enlarge. Under the iron law that the strong will always be strong, it is almost impossible for small and medium-sized polyester yarn companies to overtake leading companies in corners.
1. Tongkun Group: polyester filament production capacity will reach 9.8 million tons/year in 2023
In the industry, it is known as the “Wal-Mart among polyester filament companies”. It is mainly engaged in the production and sales of various types of civilian polyester filaments, as well as the production of PTA (purified terephthalic acid), one of the main raw materials of polyester filaments.
The company’s main products are various types of civilian polyester filaments, including four series of polyester POY, polyester FDY, polyester DTY and polyester composite yarn, with more than a thousand varieties, covering polyester Complete range of filament products.
Currently, the company also has the Hengchao intelligent super-simulation fiber project with an annual output of 500,000 tons and the polyester integration project of Rudong Yangkou Port in Nantong, Jiangsu with an annual output of 5 million tons of PTA and 2.4 million tons. The polyester spinning project is under construction. It is expected that the company’s polyester filament production capacity will reach 9.8 million tons/year by 2023, continuously consolidating its competitive advantage in the market.
2. Hengli Petrochemical: a Fortune 500 company and the leader of the entire industry chain
Hengli Petrochemical The main business of Petrochemical Co., Ltd. includes PX, acetic acid, PTA, polyester chips, civil polyester filament, industrial polyester filament, polyester chemical fiber, etc. Production, R&D and sales of ester films and engineering plastics.
The company’s civilian filament production capacity ranks among the top five in the country, and its industrial filament production capacity ranks third in the country. It is the largest and most technologically advanced polyester consumer yarn and industrial yarn manufacturer in the country. One of the businessmen.
3. Rongsheng Petrochemical: The world’s largest upstream company with integrated advantages
Rongsheng Petrochemical goes It is a development path extending up the industrial chain: from polyester filament to PTA, from PTA to Zhongjin Aromatics, from Zhongjin Aromatics to Zhejiang Petrochemical Refining.
With the first phase of Zhejiang Petrochemical’s 20 million tons project put into operation, the industrial chain has been completely opened up, and the advantages of integration have begun to emerge. With the commissioning of the second phase of the project, the company will become one of the largest oil refining companies in the world.
Differentiated products have very high technical requirements. However, my country’s polyester fiber filament industry started late and has a scarcity of experienced managers and engineering technicians, which has become a limitation. One of the main obstacles to the establishment of new domestic differentiated polyester fiber filament companies.
The rise of polyester filament only lacks a “flare”!
In the next 2-3 years, from a vertical perspective, the supply intensity of the polyester segment will be lower than that of the upstream PX-PTA segment. From a horizontal perspective, the new production capacity, acquisitions and reorganizations of leading companies will boost industry concentration. With the improvement, the pattern of polyester filament industry will continue to be optimized.
For polyester filament, first of all, polyester is expected to usher in a round of economic recovery in 2021: First, domestic and external end-user demand continues to improve, and domestic demand is one step ahead of overseas, and clothing industry zero Sales in September have reached +8% year-on-year in a single month. With the implementation of vaccines and the restart of overseas economies, export amounts are expected to improve at an accelerated pace. The overall terminal demand for textile and apparel is expected to rebound to around 6% of the past few years.
Secondly, the current inventory level of the entire industry chain is not high, especially in the downstream fabric and clothing links. The inventory has been basically flat in the past two years. In 2021, with the recovery of demand and As oil prices rise, there is a lot of room for replenishment, which may bring about 2%-3% demand growth.
Therefore, the editor believes that once the price of crude oil rises in the future, it will drive up the prices of PX and PTA, which will in turn push the price of polyester filament to a higher level. </p
