- So you are like this -- polyester thermal fuse!
- The 4th China Textile and Garment Media Conference was held in Quanzhou in 2024
- Footwear intelligent manufacturing enables the industry to change
- Xelong specializes in nylon thermal fuse production
- We will promote alternative governance at the source step by step, and strengthen the chain of leading industries
- Nylon thermal fuse has so many advantages
- Commercial Representative:
+86 18861266688 Ms. Jiang - Technical Consulting:
+86 13905981265 Mr. Zhang - Email: xmzx333@163.com
- Web: www.xlfiber.com
- Add: 85 Jinghua Avenue, Xiyuan Industrial Park, Zhangping City, Fujian
Platts Energy Consulting recently reported that with China's large number of new production capacity put into production in the first half of 2021, it is expected that the Asian purified terephthalic acid (PTA) market will experience oversupply. This will impact PTA production profitability and prompt Northeast Asian producers to find other distribution channels. Market participants predict that PTA goods in Northeast Asia will begin to be sold to other markets such as India, the Middle East and Europe.
China's capacity expansion
Market analysts predict that in the first half of 2021, a total of 7.9 million tons of new PTA production capacity will be put into production in China, which means that China's PTA production capacity in the first half of 2021 will increase by nearly 14% compared to 2020.
However, industry insiders predict that after the new production capacity is put into production, the overall operating rate of China's PTA plant will decline in 2021, because the growth of downstream polyester fiber demand lags behind the expansion rate of PTA production capacity. Since the second half of 2020, PTA stocks in the Chinese market have been hovering at a record level of 3.6 million to 4 million tons, which is much higher than the usual level of 1 million to 1.5 million tons before the outbreak of the new crown pneumonia. This is mainly due to the commissioning of new capacity and weak demand, especially at the beginning of 2020.
According to S&P Global Platts data, from September to early December 2020, the average price difference between PTA and raw material paraxylene in the Asian market is 77 US dollars/ton, and the average price difference between PTA spot and raw material paraxylene in the domestic market is RMB 523/ton, a decrease of 13%~16% from the first half of 2020. Sources said that this level of price difference has reduced the production margins of some Asian PTA producers to negative values, but the price difference between PTA and raw material paraxylene in 2021 may be further narrowed, especially in the Chinese market.
Although market participants have discussed the export potential of China's PTA after large-scale production capacity expansion, due to logistics challenges, higher freight costs compared to other Northeast Asian exporting countries, and lack of new import markets, China's PTA exports are expected to be exported in 2021 There will be no significant growth.
Northeast Asian producers seek other ways
As China's domestic PTA production capacity increases, South Korean PTA exporters will continue to target the European and Turkish markets and make full use of the advantages brought by free trade agreements.
In addition, manufacturers in other regions of Northeast Asia that have supplied large amounts of PTA to China in the past are also actively exploring other markets such as Vietnam and India.
India partially relies on imports
Market participants said that in the first half of 2021, India's domestic PTA market may be tight, leading to increased imports. India is the second largest PTA market in Asia. According to Indian customs data, before the outbreak, India usually imported 50,000 to 60,000 tons of PTA per month.
Affected by planned and unplanned shutdowns of domestic PTA production facilities, the Indian PTA market has been facing a shortage of domestic supply since mid-September 2020. At the same time, some PTA producers in India began to enter the downstream business in August, increasing the supply of PTA to the newly acquired polyester production facilities and reducing part of the market supply. The current tight supply in India's domestic PTA market may continue until 2021, because there is no new domestic PTA production plan in 2021.
Therefore, traders expect that India’s import demand for PTA will be greater in the first half of 2021, but uncertainties such as stricter import controls, tight container market supply and the epidemic still exist. The Bureau of Standards of India is expected to implement stricter quality control on PTA imports in 2021. Due to the impact of the epidemic, the timetable for implementing stricter quality control on PTA imports in December 2020 has been postponed. This may cause temporary supply problems.
According to sources, freight costs are expected to remain high until February next year or even longer before returning to normal levels. Compared with the normal level, the current freight cost has increased nearly 3 to 4 times. The skyrocketing freight rate has pushed the price difference between PTA CFR India and CFR China to US$117/ton, which is the highest since Platts began evaluating the price difference between PTA CFR India and CFR China in November 2008. Data from Platts Energy Information from 2018 to early 2020 show that this spread is usually less than $30/ton.
Fujian Zhangping Xielong High-tech Chemical Fiber Co., Ltd. is a professional supplier of material spinning, weaving and dyeing for shoe textiles. The main products are nylon thermal fuse, polyester thermal fuse, TPU special filament, TPU special filament, PES hot melt adhesive omentum, PA hot melt omentum, etc.
The launch of Xielong Group's new materials will provide environmentally friendly, safe, and better-performing products for the development of shoe materials, clothing, luggage, furniture, and decoration industries.
If you want to know more product information, please contact: Ms. Jiang 18861266688 Manager Chen 13960259999 Website: http://www.xlgxhx.com
- The 4th China Textile and Garment Media Conference was held in Quanzhou in 2024
- So you are like this -- polyester thermal fuse!
- Footwear intelligent manufacturing enables the industry to change
- Xelong specializes in nylon thermal fuse production
- We will promote alternative governance at the source step by step, and strengthen the chai
- Nylon thermal fuse has so many advantages
- Help Henan textile and garment industry chain development
- What is a nylon thermal fuse
- Focus on textile and other 100 billion yuan industry to enhance competitive advantage
- What are the characteristics of TPU special filament