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

Tao Jiayi believes that the reshuffle will lead to some small and medium-sized chemical fiber enterprises to withdraw from the market because of competition, and some small and medium-sized chemical fiber enterprises with core competitiveness in technology will make more efforts in functional, differentiation and other segments. Every time the industry reshuffle, the industry concentration will be increased again, and the same is true of this industry reshuffle.

Industry insiders believe that the concentration of production capacity in the entire industry has been further improved, and market competition has become more intense. The capacity share of leading enterprises will be further increased, while some small and medium-sized enterprises will withdraw and some will transform. For example, do differentiated products, or expand downstream, find their own development model, to avoid direct competition with leading enterprises.

In this regard, Chen Sheng explained that large enterprises continue to seek to extend upstream, open up the whole industrial chain, and reduce the impact of market fluctuations on business operations. Such a development strategy strengthens the competitive advantage of integrated enterprises in the industry and reduces the impact of industry cycle fluctuations on corporate profits. At the same time, in order to avoid the competition of big currency, medium-sized polyester enterprises are increasing investment in special silk, differentiation, environmental protection and other aspects, seeking to form advantages in the field of segmentation.

It is worth mentioning that in the 2022 "Futures Everyone talk" commodity mid-year summit chemical fiber special session hosted by Futures Daily, Wan Lei, secretary-general of the Polyester Filament branch of the China Chemical Fiber Industry Association, said that in the context of carbon peak and carbon neutrality, environmental protection policies are becoming stricter, and enterprises that do not have competitive advantages will gradually be eliminated by the market.

"Large leading enterprises will continue to expand by virtue of their scale and technological advantages, and the industry concentration will gradually increase, and the polyester filament industry will enter the development stage of the strong and constant strength." Wan Lei said that in the face of huge external and own pressure, China's polyester industry can only achieve sustained high-quality development by practicing basic skills.

"On the one hand, adhere to basic research and carry out independent innovation, further promote product differentiation, functionalization and high-end development, improve the added value of products, and achieve high-quality development of conventional fibers." On the other hand, explore the carbon neutral development mode and green low-carbon transformation, increase the research and development of green technology and equipment, strengthen the transformation of clean production technology and the promotion of key energy saving and emission reduction technologies, explore the carbon peak route in the polyester filament industry, and explore the implementation path of carbon reduction in the industry." Wan Lei said.

Question three: How to cross the "pain period"

From the current market situation, the energy shortage will continue in the short term, overseas economic recession or inevitable, external demand will show a trend of decline in the medium and long term, and the domestic epidemic will be repeated, which will still drag down domestic consumption. High costs and weak demand are difficult to change in the future for some time, the plight of the chemical fiber industry will continue, and the "pain period" of the chemical fiber industry will continue for a long time.

"The capacity growth of the polyester industry has not declined, and the future release of new capacity will continue." The global economy is facing the risk of recession, and the competition between Southeast Asia, India and China in the textile and apparel sector is also intensifying." Chen Sheng believes that in the environment of weak consumer demand for textile and apparel, the reshuffle of the chemical fiber industry is difficult to avoid.

In Tao Jiayi's view, the top priority for chemical fiber enterprises is to control cash flow and inventory, and optimize their own team management. At the same time, find a suitable track, concentrate on breaking through, and give play to their core competitiveness.

"Comply with the current market situation, chemical fiber enterprises in order to survive the most difficult period." On the one hand, look for the differentiation and diversification of products, in order to resist the risk of single varieties and increase the added value of products; On the other hand, we should consider walking on 'multiple legs' and use financial tools to appropriately resolve the problems of enterprise survival and improve competitiveness." Pang Chunyan analysis said.

"As far as chemical fiber enterprises are concerned, timely adjustment of market expectations, good inventory management, in the upward stage of the market, through promotion and other ways to reduce inventory pressure, timely preservation of inventory work, so that enterprises in the downward price cycle to maintain profits." Wu Wenhai said.