In-depth analysis of China's chemical fiber industry market

First, the development status of China's chemical fiber industry

Chemical fiber accounts for more than 84% of the total textile fiber processing in China, and is the most important fiber raw material in the textile industry. "In 2021, the chemical fiber industry will contribute about 27% of the profits of the entire textile industry." In 2021, the chemical fiber industry has achieved stable development, and the overall performance is that the production growth rate is stable, the price focus is shifted upward, exports maintain growth trend, profitability continues to be stable, and fixed asset investment growth is obvious.

China's chemical fiber manufacturing industry started in the 1950s, and China has become the world's largest producer of chemical fiber. Chemical fiber industry has become an industry with international competitive advantages in China, is an important pillar industry of the national economy, high performance, bio-based chemical fiber raw materials and fiber manufacturing is also an important part of China's strategic emerging industries. Chemical fiber is a kind of fiber with textile properties, which is made of natural polymer or synthetic polymer as raw material through the preparation of spinning stock, spinning and post-treatment. According to the different raw materials, chemical fibers can be divided into artificial fibers and synthetic fibers.

Source: High Outlook Industry Research think tank

In 2020, due to the serious impact of the new coronavirus pneumonia epidemic, the operation of the chemical fiber industry faces increased risks and tests, and the economic efficiency and operation quality of the industry have dropped significantly year-on-year. The collapse of crude oil prices combined with low market demand, chemical fiber market prices are generally running at a low level; The overseas epidemic situation is grim, and the quantity of China's import and export of chemical fiber products has decreased significantly; However, with the improvement of the domestic epidemic situation, the whole industrial chain has accelerated the resumption of work and production, the textile terminal demand has gradually recovered, the economic operation of the chemical fiber industry has also shown a rebound, the production growth rate has steadily recovered, and the decline of the main economic operation indicators has continued to narrow. However, we must also see that the pressure on the production and operation of industry enterprises has not been completely alleviated, the development confidence is still insufficient, and the efficiency and investment have not reversed the negative growth trend.

Second, China's chemical fiber industry output statistics

In the second quarter of the first quarter of 2021, the production of chemical fiber industry continued to grow, driven by the increase in downstream demand and the rise in the price of petrochemical raw materials, and the benefit of the chemical fiber industry increased significantly. The epidemic in early 2020 still has a certain degree of negative impact on the chemical fiber industry. Fortunately, these indicators are gradually warming up, and in the future, as the epidemic is gradually under effective control, China's chemical fiber industry will still recover better growth. Data show that from January to October 2021, the production of chemical fiber was 55.71 million tons, an increase of 11.8%; The chemical fiber industry achieved operating income of 835.6 billion yuan, an increase of 31.5%, and the total profit of 53.9 billion yuan, an increase of 275.6%; The industry profit margin was 6.45%.

2021 China's chemical fiber industry cumulative output and year-on-year

Data source: Ministry of Industry and Information Technology, High outlook industry research think tank

In 2021, China's chemical fiber production and year-on-year

Data source: Ministry of Industry and Information Technology, High outlook industry research think tank

From 2015 to 2021, the total output of China's chemical fiber industry increased from 48.3171 million tons to 67.085 million tons, showing an overall growth trend.

Cumulative output and cumulative growth of China's chemical fiber industry from 2015 to 2021

Data source: Ministry of Industry and Information Technology, High outlook industry research think tank

The profit level of the chemical fiber industry ranks first in the whole textile industry chain is a rare phenomenon in recent years, especially since 2021, the chemical fiber industry is facing complex challenges, through the supply side structural reform, the production capacity growth rate of the chemical fiber industry enterprises has slowed down significantly, the industry supply and demand pattern has improved, the industrial chain is more perfect, and product development has continued to strengthen.

In 2021, the operating income of enterprises above the scale of chemical fiber industry in China and the same period last year

Data source: Ministry of Industry and Information Technology, High outlook industry research think tank

Total profit of enterprises above scale of chemical fiber industry in China in 2021 and year-on-year

Data source: Ministry of Industry and Information Technology, High outlook industry research think tank

Third, the development prospects of chemical fiber industry

1. The overall technological progress of functional textile new materials is remarkable

In the future, we will further improve and break through the key production and application technologies of high-performance fiber key varieties, further improve the stability of fiber performance indicators, and expand the application of high-performance fiber in aerospace, Marine engineering, advanced rail transit, new energy vehicles and electric power.

2, chemical fiber deep recycling

The key to the construction of ecological civilization and the realization of high-quality development is to promote green development and lifestyle, circular economy is the implementation of green development mode and rely on, and recycling chemical fiber industry is also an integral part of the green development of the textile industry, is one of the main directions of the comprehensive utilization of waste polyester bottle flakes and waste textiles.

3, the chemical fiber industry market concentration increased

At present, the total number of chemical fiber enterprises in China has reached more than 2,000, not only the number of enterprises, but also small production scale, in addition to Yizheng chemical fiber and a few other enterprises to reach the world-class level, most chemical fiber production enterprises in the annual production scale of about 10,000 to 20,000 tons, many chemical fiber production enterprises annual production scale of less than 10,000 tons. With the tightening of environmental protection policies, the intensification of market competition, and China's large-scale industrial restructuring, in the future, the chemical fiber industry will enter the era of large-scale enterprise mergers and acquisitions, and the market concentration of the chemical fiber industry will increase.

4. National policies provide strong support

The "13th Five-Year Plan" Scientific and Technological Progress Outline of the Textile Industry lists "high-performance polyester industrial silk preparation technology", "Nylon 66 fiber large-scale preparation and functional product development" and "PLA fiber" as scientific and technological research and industrialization projects of the "13th Five-Year Plan" textile industry. "Chemical fiber industry" 13th Five-Year "development guidance" put forward efforts to improve the conventional chemical fiber modification technology and new product research and development level, focus on improving the flame retardant, antibacterial, chemical resistance, UV resistance and other conventional fibers such as polyester, nylon, recycled cellulose fibers, improve the functional, differential fiber varieties proportion. The continuous introduction of industrial policies has pointed out the general direction of future development for enterprises in the industry, and will also support the better and faster development of China's chemical fiber industry.

5, the application field continues to expand

With the continuous expansion of fiber application fields and the enhancement of people's consumption power, the total amount of global fiber processing is growing at an average annual rate of about 3%. The implementation of the "Made in China 2025" national strategy and the "Internet +" action plan has accelerated the differentiated, intelligent and green development of China's chemical fiber industry. High-performance, differentiated, ecological fiber applications are constantly expanding to transportation, new energy, medical and health, infrastructure, security protection, environmental protection, aerospace and other industrial fields. With the deep adjustment of China's economic structure and opening up to the outside world, the acceleration of the urbanization process, and the upgrading of personalized, differentiated and functional demand represented by the middle class, elderly consumption, young fashion, etc., the adjustment of the industry's supply side product structure will accelerate, bringing space and opportunities for the overall quality and efficiency improvement of the industry and the development of high-quality production capacity.