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Oil Prices Rose &Nbsp; The Era Of Profiteering Of Chemical Fiber Enterprises Is Coming To An End.

2011/3/24 10:39:00 49

Rising Oil Prices Polyester Fiber And Cotton Prices Skyrocketed

With the rise of oil prices, the chemical fiber industry is also facing a trend of higher cost.

Some analysts said that the production of chemical fiber raw materials PTA (terephthalic acid) enterprises will be from 20% super high.

Gross profit margin

Down to about 10% normal level.

Textile industry observer Wang Qian pointed out that in 2010, oil prices were about $80 per barrel, and now it has risen to $105 a barrel. From the current situation, the momentum of oil price rise is still strong.

Rising oil prices

The chemical fiber industry will have a big shock.

As a downstream polyester fiber manufacturer in PTA, its performance also rose sharply in 2010.

S (10.65, -0.11, -1.02%) (600871.SH), one of the leading enterprises of chemical fiber, expects that net profit attributable to shareholders of the parent company will increase by more than 200% over the previous year, reaching 382 million yuan in 2010.

Some analysts believe that in 2010, PTA,

Polyester

And so on, the main reason is that the profits of production enterprises are increasing.

Cotton prices skyrocketed

The price of chemical fiber is relatively cheap, the use of cotton in garment enterprises is reduced, and the use of chemical fiber has increased, resulting in an alternative effect. This year, cotton prices may fall from a high of 30 thousand yuan per ton to 28 thousand yuan per ton, plus the rise of oil prices, and the age of profiteering of chemical fiber enterprises will soon be over.

The impact of rising oil prices on the various links of the chemical fiber industry chain is not the same.

PTA is one of the main raw materials of chemical fiber and is in the upstream of the chemical fiber industry chain. Wang Qian said that the supply of PTA in China still has a large gap, and 30%~40%'s PTA needs to be imported from abroad. Therefore, as the upstream oil price of PTA rises, the enterprises that produce PTA will pfer the cost of the price increase to the downstream relatively easily.

The analysts said that as of the end of 2010, the domestic polyester fiber production capacity has reached 35 million tons, accounting for 83% of all chemical fiber production capacity. After 2010, the new polyester fiber project launched before and after the construction period of one year or so will be put into operation this year. The new polyester fiber production capacity will reach about 5 million tons. If there is not enough demand, the large-scale production capacity will be faced with the problem of excess capacity; however, those polyester fibers enterprises that can produce differentiated products and high added value products can still maintain a good profit level.

Wang pointed out that if the price of oil continues to rise this year, clothing industry and other downstream industries will have a bigger impact on the entire chemical fiber industry because of the high cost increase and the reduction of demand.