PTA's Past Life

PTA, bringing up PTA seems to be very unfamiliar to many of your friends and don't know what it is, but you seem to be familiar with what oil and textile clothing has to do with how we live. Oil is an upstream product, clothing is a downstream product, and PTA is an intermediate product through both. As a result, China is the world's largest PTA producing and consuming country. The leading companies in domestic PTA production mainly include Hengli Petrochemical, Fujian Baihong, Yisheng Petrochemical and Rongsheng Petrochemical, among others. The market distribution is relatively high in the Long Triangle, Pearl Delta and Northeast regions. It is a major region with a combined production capacity of more than 90%. Since China is the largest producer and consumer country, the supply level of the PTA is relatively less influenced by foreign countries and is simpler to analyze fundamentally compared to other futures.

1. PTA industry chain

Figure 1

Second, PTA supply and demand spatial analysis

Based on the size of PTA production in our country and its growth, the scale basically remains on a year-on-year growth trend. PTA production in 2021 was about 5279 million tons and capacity utilization was about 79.6%.

Due to the expansion prior to PX and the increased production capacity of the PTA itself, the overall PTA supply is largely influenced by the demand for polyester in the downstream sector, where the downstream of polyester yarns and polyester short fibers are concentrated in textile garments, both accounting for 82%, with Taobao, and many others gaining momentum these years. With the rise, it has also become easy for people to buy clothes online, so the demand for clothing has been increasing, and the supply landscape of the entire PTA market has improved markedly compared to a few years ago. In fact, with the development of the market, the monopolization of the upstream and downstream integration of the overall PTA industry has become more pronounced, and the market concentration is relatively higher.

Third, factors affecting the price of PTA

(a) Change in the supply and demand relationship

(ii) Upstream PX price change

(3) Changes in crude oil prices

(4) Change of polyester operating load

(5) Changes in the export volume of polyester products

Fourth, love and hatred between PTA giants

PTA has changed from the previous three giants to eight giants. Once one of the three giants, Xianglu has ceased to exist. Yi Shing and Hengli are still firmly in the top two. Yisheng Petrochemical was established by a joint venture of Zhejiang Hengyi Petrochemical Corporation and Wing Shing Petrochemical Corporation. It is a modernized large-scale petrochemical enterprise specializing in production of PTA and is a domestic PTA A leading company in the TA market, it is also the largest PTA manufacturing company in the world. Its production base is located in Dalian, Hainan, Ningbo. Hengli Petrochemicals is a subsidiary of listed company Hengli Corporation and its production base is located in Dalian. The other 6 giants are Tongkun Corporation, Huabin Petrochemical, Fuhua Industrial Trade, Zhuhai BP, Hanbang Petrochemical, Helen Petrochemical

。 There is indeed some cooperation between these giants, but more is actually a huge competition. In 2014, Yisheng, Hengli, and Heron released huge production capacities, but the price of PTA fell sharply at the time, and PTA was even lower than that of upstream raw material PX, resulting in severe production losses in the PTA industry. Then, in May and June 2014, the three giants began to cooperate with joint limited production, stipulating that the load opening rate should not exceed 70% of the gross capacity. The new contract price was re-priced according to the raw material PX price plus 700 pieces of processing fee, and then caused a protest against the downstream polyester industry, and the whole polyester industry was inspected for a long time. After that, the whole alliance began to break up, began to slowly dissolve, relations began to get tense, and then they went about their own business, constantly trying to fix prices, while constantly squeezing the cash flow of the industry, squeezing the small factories out of the market, and then the path of the prosperity grew wider and more egrets left the market. Only the remaining energy is still greater than it is today.

In fact, the PTA variety, whose upstream and downstream products are related to our usual way of life, is well worth studying, whether from demand or supply. These industry leaders eat weak meat in a limited market, and the story of the winner for king is also covered by Ojiazu Zurakudo. If you are interested, we will talk more about it later Relatively rare varieties, you can leave a comment below about the varieties you want to know, and we will provide you with devotional articles based on likes or feedback points.