The "Secret" Behind The Astonishing Speed Of Textile Raw Material Prices This Year

Cotton prices have risen and up to an astonishing level this year. This brings some opportunities to replace the varieties of chemical fiber, but it also causes people to think about the safety of raw materials.

China's chemical fiber industry has two major characteristics in raw materials, which are highly dependent on oil and highly dependent on imports. The cost of raw materials accounts for a large proportion in the production and operation of enterprises.

From this year's situation, the bottleneck problem of raw materials in domestic chemical fiber industry is still outstanding.

Fortunately, the localization of raw materials in some industries is faster and has a positive effect on the operation of the industry.

It can be said that the overall trend of polyester raw materials this year has run counter to the raw material prices of other major chemical fiber varieties.

Since 2010, international crude oil prices have remained stable throughout the world, and have slowed down after May.

Crude oil and its own supply and demand, polyester raw materials PX, PTA, MEG prices also fell slowly, polyester products prices fell.

However, under the pull of downstream textile demand, the polyester polyester industry has a higher operating rate, especially in the two quarter. The price of the products is generally stable and firm, and the output and benefits are better.

Since the beginning of this year, international crude oil prices have oscillated at a low level of US $65~85, and the volatility has been stable compared with previous years.

The price of crude oil has no support for PX, and the overall supply of the world's PX is adequate (especially in the Middle East when Kuwait and Oman's new plant have started to stabilize supply to China market, and India's supply has increased correspondingly), so prices have fallen slowly.

PTA enterprise cost pressure is reduced, and driven by downstream demand, the overall operating rate is higher.

PTA social inventories continue to increase, becoming one of the fundamental reasons why the market is hard to improve.

Meanwhile, with the launch of new projects such as Peng Wei petrochemical and Fujian Jialong in the first half of the year, the output of domestic PTA continued to increase, which was more than that of polyester demand.

Therefore, under the expectation that market supply and demand situation has not been effectively improved, the price of PTA is difficult to go up.

Similar to the PTA case, MEG prices also fell from $1000 / ton to US $700 / ton under the influence of crude oil and ethylene prices and the relative surplus of supply.

By the end of 2009, China's new MEG capacity has reached 1 million 350 thousand tons.

Shortage of nylon CPL left speculation space

With the increase of nylon downstream polymerization and spinning start up rate, the price of CPL, the main raw material of nylon, increased from 18900 yuan / ton in January this year, and intermediaries made use of the CPL anti-dumping investigation case in April to raise the price of CPL to the highest point of 23200 yuan / ton in early May.

The rising price of raw materials has finally made it impossible for downstream enterprises to bear. Spinning and polymerization enterprises have reduced the operating rate to cope with the situation of raw material prices. The price of CPL has dropped all the way, and has fallen to 19200 yuan / ton in late June.

Owing to the tight supply of adiponectin in the world, the output of adipic acid hexadiamine salt has been greatly reduced.

In 1~5, China imported 2 thousand and 300 tons of adipic acid hexadiamine salt, a significant decrease of 54.35% compared with the same period last year, while the price rose by 33.58%. CPL imports 294 thousand and 300 tons, an increase of 21.25% over the same period last year, a sharp increase in price of 85.31%, an increase of 14.49% tons of imports of polyamide chips, 14.49% of the price, and a rise of 60.10% in price compared with the same period last year.

CPL import dependence is still very high, and the shortage of domestic CPL has brought speculation and opportunities to intermediaries.

After the fall in international crude oil prices in May, the price of CPL continued to rise, mainly due to speculation among middlemen.

As a result, the fluctuation of nylon prices and nylon prices in the first half of the year did not always follow the trend of crude oil or benzene.

While the price of raw materials has gone up, several main industries in the downstream of nylon have developed rapidly, with the growth rate between 12% and 18%, which provides room for the development of the nylon industry.

Although the growth rate of the downstream development is smaller than that of nylon, but the base of the purified fabric, silk and interwoven woven fabric is larger, and the demand for nylon is relatively large.

The price difference of viscose products is narrowed.

According to some middlemen, the recent business of viscose raw materials is not very good, because the price of raw materials has already exceeded the acceptable scope of downstream enterprises.

Indeed, at the end of June this year, the price of raw materials in viscose fiber industry increased substantially compared with the same period last year.

Taking viscose staple as an example, the cotton pulp compares with the price difference of about 5500 yuan / ton vertically, and the price difference between products is only 3000 yuan / ton, and the profit margin of products is reduced. Compared with the price difference between raw material purchase and product sale, the horizontal comparison is only 5400 yuan per ton, which can not meet the processing cost at all.

If the enterprise produces products according to the current price raw materials, it must be a loss.

However, the situation of different enterprises is different, and the situation of overall loss will not appear.

Generally speaking, the time and price of raw material purchase will have a greater impact on the profits of enterprises.

There is still a considerable profit margin for some enterprises with proper procurement strategy.

Shortage of nylon CPL left speculation space

Under the pull of polyamide downstream polymerization and the increase of spinning rate,

Owing to the tight supply of adiponectin in the world, the output of adipic acid hexadiamine salt has been greatly reduced.

In 1~5, China imported 2 thousand and 300 tons of adipic acid hexadiamine salt, a significant decrease of 54.35% compared with the same period last year, while the price rose by 33.58%. CPL imports 294 thousand and 300 tons, an increase of 21.25% over the same period last year, a sharp increase in price of 85.31%, an increase of 14.49% tons of imports of polyamide chips, 14.49% of the price, and a rise of 60.10% in price compared with the same period last year.

While the price of raw materials has gone up, several main industries in the downstream of nylon have developed rapidly, with the growth rate between 12% and 18%, which provides room for the development of the nylon industry.

Although the growth rate of the downstream development is smaller than that of nylon, but the base of the purified fabric, silk and interwoven woven fabric is larger, and the demand for nylon is relatively large.

Viscose products raw material spreads narrowed {page_break}

According to some middlemen, the recent business of viscose raw materials is not very good, because the price of raw materials has already exceeded the acceptable scope of downstream enterprises.

Indeed, at the end of June this year, the price of raw materials in viscose fiber industry increased substantially compared with the same period last year.

Taking viscose staple as an example, the cotton pulp compares with the price difference of about 5500 yuan / ton vertically, and the price difference between products is only 3000 yuan / ton, and the profit margin of products is reduced. Compared with the price difference between raw material purchase and product sale, the horizontal comparison is only 5400 yuan per ton, which can not meet the processing cost at all.

If the enterprise produces products according to the current price raw materials, it must be a loss.

However, the situation of different enterprises is different, and the situation of overall loss will not appear.

Generally speaking, the time and price of raw material purchase will have a greater impact on the profits of enterprises.

There is still a considerable profit margin for some enterprises with proper procurement strategy.