Yisheng Petrochemical Plays The Role Of "Big Brother"

It is understood that Yisheng Petrochemical is made from China chemical fiber.

The leader, Zhejiang Hengyi group and Rongsheng Chemical Fiber Group Co invest in modern large-scale private petrochemical enterprises specializing in the production of PTA products.

After years of operation and development, there are three production bases such as Ningbo and Dalian.

As of the end of 2015, Yisheng petrochemical

The annual capacity has reached 13 million 500 thousand tons, accounting for nearly 40% of the current effective capacity of the domestic PTA industry, accounting for 18% and 15% of the Asian and global PTA capacity respectively. It is the world's largest PTA producer.

Yisheng Petrochemical's parent company is also strong. The two groups own a listed company with a total market capitalization of more than 50 billion yuan.

With the support of the capital market, Yisheng Petrochemical has the advantage that other enterprises can not compare with in terms of capital cost, financing capacity and financing channels.

Qi Mingzhi said that the so-called "food in hand, not panic in mind".

On the road of sustainable development, it has always been very strong. Because of this, Yisheng Petrochemical has displayed its own "domineering" in the layout of the whole industrial chain.

In addition to the absolute advantages of capacity and volume in the industry, Yisheng Petrochemical always plays the role of "big brother" in the critical moment of the development of the industry.

In November 2014, driven by the collapse of international oil prices, the PTA factory once again suffered heavy losses. Yisheng Petrochemical took the lead in carrying out the "flag" of parking inspection and actively digested the excess inventory. Other domestic PTA factories also followed suit, and the PTA factory's deteriorating cash flow situation was improved.

Last year, under the leadership of Yisheng petrochemical, the PTA factory successively took turns to stop the overhaul to alleviate the oversupply situation and avoid the market entering the disorderly vicious competition again.

"Yisheng Petrochemical every big move in the spot market can basically get the response of other PTA factories, the appeal is really strong."

Wang Guangqian told reporters.

After a substantial expansion of industry capacity from 2011 to 2014, the negative impact of PTA overcapacity on the market is becoming more and more serious. Low price disorderly competition has led to the embarrassing situation of "bread is cheaper than flour" in the PTA market.

"In order to ensure the steady operation of the industry, in May 2014, Yisheng petrochemical joint Xiang Lu and Hengli and other domestic mainstream PTA factories determined the sales mode of cost pricing, and agreed that the maximum load limit for each factory would control the oversupply of PTA, and the PTA industry would turn a profit in June of that year."

Wang Guangqian, an analyst at Soochow futures, recalls.