Conventional Product Price Advantage Lost Regeneration Three Dimensional Staple Profit Increase

Crude oil prices collapsed, leading to a fall in prices of raw polyester fibers, which fell by around 15% last year.

Such a sharp decline led to a larger drop in prices of raw materials, such as the decline in raw material ethylene glycol prices by 21% and PTA prices by 32%.

Under the weak demand, for raw fiber, the key to supporting price is raw material cost.

The market squeeze caused by the falling prices of raw fibers will certainly lower the price of recycled fibers.

The reason is that in the case of low demand for downstream, recycled fiber is more difficult to price due to the larger dependence on the main raw material bottle flakes, resulting in almost no price advantage over raw fiber.

Even the price of its main raw material bottle has been more expensive than the slice price. This makes the regenerated fiber industry suffer from the situation that flour is more expensive than bread, and the industry is under heavy pressure.

Fang Yeqing, deputy general manager of Haiyan Haili environmental protection Fiber Co., Ltd., said that the profits of the industry were squeezed at present, and the enterprises are currently suffering from inventory losses.

However, the enterprise is not a bit of an opportunity, Ye Qing predicted that the future price of brick will further decline, especially the price of brick imported from abroad will decline, which will provide a certain profit margin for recycled polyester fiber.

Huarui information recycling polyester analyst Chen Yingyuan analysis, at present, the regenerated polyester industry is at a loss of 500 yuan / ton level. Since the crude oil slump last December, the price of recycled polyester filament has dropped the most, from 8100 yuan / ton to 6650 yuan / ton.

Zhang Feipeng, chairman of Fujian Resources Recycling Technology Co., Ltd., said many enterprises in the whole industry were shutting down production and reducing production.

Many enterprises have been on vacation, compared with previous years, 10~20 days ahead of schedule.

From 2012 onwards, regenerated polyester

The price oscillation has gone down, and the industry has been waiting for the market to reverse.

Some companies said that crude oil prices had also fallen before, and that the prices between native and renewable prices also occurred frequently.

This is a sudden and uncertain prospect, which makes the industry's anxiety spread.

If this situation lasted for a long time, there would be no need for production to be regenerated if there was no difference between the price of native good use and regeneration.

However, the relevant people of China Chemical Fiber Industry Association said that the drop in crude oil prices should be divided into two parts: it is bad for conventional recycled products, but for differentiated and functional products, because of its personalized, quick response, low demand, good service and high quality, the price of products will not change very much, and the decline of raw material prices will make enterprises earn extra profits.

regenerate

It is mainly divided into regenerated cotton staple fiber, recycled three dimensional staple fiber and regenerated filament.

The regeneration of three dimensional staple fiber is a representative of varieties with strong profitability.

Its price performance is relatively strong. After the price of raw materials fell last year, the profit margins increased.

Over the long term, many interviewed companies also say that the drop in oil prices is more beneficial than disadvantages.

Zhang Feipeng, chairman of the Resources Recycling Technology Co., Ltd., said that for enterprises, the market decline is only temporary, and it will definitely rise. By that time, the backlog of devaluation inventory will bring high profits to enterprises.

For the whole industry, those who are not well prepared will be eliminated by this tough situation.

Industry shuffled and industrial upgrading accelerated.