The Supply Increased Obviously, And The Competition Situation Of Polyester Staple Industry In 2020 Was More Intense.

In recent years, the supply of polyester staple fiber has increased significantly. In 2020, more than 600 thousand tons of equipment were planned to go into operation, but the downstream demand for traditional demand was not as strong as supply, and the contradiction between supply and demand of industry was again intensified.

Specifically, in 2019, the direct spinning polyester staple fiber industry was newly commissioned 620 thousand tons, with a total capacity of 7 million 901 thousand tons, up 8.52% from the same period last year. The new capacity is mainly made of conventional cotton staple and filled staple fiber. The details are as follows:

Two thousand and nineteen Details of new commissioning equipment for direct spinning polyester staple fiber industry

Corporate name	Capacity (10000 tons) / Year)	Commissioning time	Device address	accessory products
Yangzhou	Fifteen	Two thousand and nineteen February 2013	Yangzhou	Low melting point and hollow staple fiber
Jiangsu Xiangyang	Eight	Two thousand and nineteen April 2013	Jiangyin	Polyester staple fiber
Suzhou Jiangnan	Ten	Two thousand and nineteen May 2013	Suzhou	Polyester staple fiber (regeneration line)
Suqian Yida	Twelve	Two thousand and nineteen Year 5, June	Suqian	Polyester staple fiber
Fujian Yi Jin	Seven	Two thousand and nineteen August 2013	Jinjiang	Polyester staple fiber
Jinzhai new nylon	Ten	Two thousand and nineteen December 2013	Jinzhai	Polyester staple and polyester chips

Source: lung Chung

From the actual output, in 2019, the actual output of domestic direct spun polyester staple fiber was 6 million 252 thousand and 600 tons, up 13.46% over the same period last year. Since 2019, along with the large scale refinery and private production in operation, the cost of polymerization has been decreasing continuously during the year. The price advantage of direct spinning polyester staple fiber is very obvious. The market has replaced some of the recycled short fiber market in many fields, especially the replacement of filled staple fiber is more obvious.

Source: lung Chung

As shown above, there is a high overlap between the downstream areas of the direct spinning polyester staple fiber and the high-strength and low stretch imitation. Generally speaking, when the difference between the two spreads exceeds 2000 yuan / ton, the substitution advantage of regeneration is more obvious. When the difference between the two spreads is less than 1000 yuan / ton, the substitution advantage of regeneration will decrease. Entering the 2019, the development of private refining and refining greatly reduced the cost of polyester, and the price of direct spun polyester staple fiber declined all the way. However, the regenerated staple fiber was indeed limited by the cost limit, and the difference between the two prices dropped again to 500 yuan / ton level, and there was even no price difference in individual time periods. Especially in the field of filling, due to the narrow price gap, the start-up load of regenerated hollow enterprises continues to be low, and the inventory pressure continues to be larger. It also promotes some enterprises to initiate transformation or move to the original hollow market.

Therefore, despite the increasing supply, the market has gradually revealed the contradiction between oversupply and demand. However, in 2019, the average profit of enterprises was still around 200 yuan / ton, and the inventory at the end was relatively low, so the direct spinning polyester staple industry in 2020 still had some new production expectations.

Two thousand and twenty Year polyester New production capacity statistics for short staple fiber

Enterprise name	Products involved	Installed capacity	Installation location	Estimated time of production
Huaxi Village	Polyester staple fiber	Ten	Jiangyin	Two thousand and twenty Early year
Foville	Original three dimensional hollow staple fiber	Five	Yangzhou	Two thousand and twenty Early year
Fujian Yi Jin	Polyester staple fiber	Seven	Jinjiang	Two thousand and twenty Year Q1
Suqian Yida	Polyester staple and hollow staple fiber	Twenty	Suqian	Two thousand and twenty Year Q2
Yizheng chemical fibre	Polyester staple and hollow staple fiber	Twenty	Yangzhou	Two thousand and twenty year
Ningbo Quan di	Hollow staple fiber	-	Ningbo	Two thousand and twenty Year Q2

Source: lung Chung

As shown in the table above, there are still more than 620 thousand tons of new capacity planned for commissioning in the direct spinning polyester terylene industry in 2020, when the industry's new capacity will reach 8 million 521 thousand tons, up 7.85% over the same period last year. But new production capacity or tendency to fill and differential staple fiber is the main trend. For conventional varieties, apart from the price advantage, the competitiveness of other areas will be greatly weakened.

On the whole, the macro situation in 2020 is still complex and changeable. There are many uncertain factors. The polyester staple industry will still face greater challenges in the uncertain trade environment and the changing pattern of domestic supply and demand.