Chemical fiber "pain period" break the "three consecutive questions"

Event background

On July 19, the news of the closure and liquidation of Jiangsu Changle Fiber Technology Co., LTD. (hereinafter referred to as Changle Fiber) caused waves in the polyester circle. In the impression of the Futures Daily reporter, this old enterprise once had a good industry reputation and advanced business philosophy, and it is also the only station for industrial research in Jiangsu line. All kinds of "halo" from dazzling to fade, why did Changle fiber come to this step today? What kind of inspiration and thinking does it bring to the industry behind its exit?

Some industry veterans say bluntly that at present, the chemical fiber industry is in the "pain period" of deep integration, and Changle fiber is neither the first one to shut down, nor will it be the last.

"Affected by the epidemic situation and the market environment, the company began to stop production on April 12, 2022, after the epidemic situation improved, due to the impact of the industry has been unable to resume production, until now the company's serious losses can not resume production, after the company's research decided to shut down." Jiangsu Changle Fiber Technology Co., Ltd. made the above explanation on the notice of termination of labor relations and economic compensation through negotiation of the company's closure.

In this regard, the futures Daily reporter also to Changle fiber related person in charge Xue Qiang (pseudonym) to verify, Xue Qiang said that the shareholders have shut down the polyester factory, related equipment will be processed, land and plant will also be rented. "We are actively choosing to stop and exit. The environment is not good, and it is difficult for a single variety to resist a cyclical downturn." He said that the polyester industry as a whole profit loss, business has been miserable for a long time, as a direct stop loss.

Changle Fiber is a typical representative of medium-sized enterprises in Jiangsu chemical fiber (polyester filament) industry. The maximum designed annual capacity of 300,000 tons, all the production of polyester POY, more than half of the production line to produce a good market prospect of differentiated fiber - porous fine denier flat silk. "In terms of the current industry scale, the capacity of Changle fiber is small, but it also has its own many advantages." Wu Wenhai, a senior figure in the chemical fiber industry, said that, for example, the factory is located in the hometown of China's bomb - Huangjing Town, Taicang City, Jiangsu Province, deep industrial cluster, convenient sales, can adjust the production variety in time according to changes in the downstream market to better meet customer needs.

The reporter learned that since the plant was completed and put into operation in 2012, it has shown a prosperous pattern of production and sales for many years. In the past 3-5 years, with the continuous improvement of industrial concentration in the chemical fiber industry, the industry's leading enterprises have entered the stage of production capacity competition, the degree of integration and scale continues to improve, the market competition continues to intensify, and the living space of small and medium-sized chemical fibers without scale cost advantages has been continuously compressed.

"At the beginning of production, Changle fiber was positioned to produce flat silk with more market prospects, and once led in this segment for many years." As "Giant" chemical fiber companies such as Tongkun and New Fengming speed up production capacity investment in this field, the market supply is saturated and entering the stage of excess, Changle Fiber's product advantages are gradually losing, and its benefits are gradually deteriorating." Wu Wenhai said.

Since the outbreak of the global epidemic in 2020, the demand for textile and apparel has been greatly hit, and the anti-risk ability of small and medium-sized enterprises in all links of the industrial chain is far less than that of large enterprises in all aspects, and it is difficult to stick to the day when the market improves. Today, the liquidation of the factory is also a helpless "stop loss" move for corporate shareholders. As a former member of the factory, Wu Wenhai also felt very sorry for the closure of Changle fiber. "Although Changle Fiber is a medium-sized chemical fiber production enterprise, its name is far from Hengli, Shenghong and other enterprises in the region, but it still has a good reputation in the industry, especially the management's advanced business philosophy." He said that in terms of sales, Changle Fiber has been implementing a low inventory strategy, and attaches great importance to timely adjustment of product production plans according to customer needs. In terms of procurement, the company recruited management talents who understood futures very early, and paid attention to the use of PTA(5756, 120.00, 2.13%) futures for price risk management at the beginning of production. Plate hedging, futures purchase and delivery, spot and contract goods using futures point price procurement are at the forefront of the industry.