Chemical Fiber And Warp Knitted Upper And Lower "Pinch Rack" Warp Knitting Enterprises Stop Production To Inventory Or Resist Rising Prices.

Recently, a piece of chemical fiber, warp knitting industry upstream and downstream "pinch rack" news attracted the attention of the market.

Since August,

The production and operation of warp knitting enterprises have been seriously affected. It is suggested that the warp knitting enterprises should stop production and stop production after the inventory is consumed, and jointly resist chemical fibers.

Unreasonable price hikes.

To this end, Securities Daily reporters interviewed the representatives of warp knitting Association, downstream warp knitting enterprises and upstream chemical fiber enterprises, trying to understand the storm caused by the price increase.

The Association recommends stopping production for out of stock.

Why does the local warp knitting Association advise enterprises to stop production? How are the warp knitting enterprises operating at present?

(Haining warp knitting industry association) a director Wang surnamed told the Securities Daily reporters that the initiative was mainly due to two considerations, one is that warp knitting enterprises to inventory, internal capacity adjustment; two is that upstream chemical fiber enterprises can adjust prices, return to a reasonable profit margin.

"For the proposed shutdown, it is more of an industry adjustment. It is an adjustment to the warp knitting enterprise to carry out its own capacity instead of what the outside world understands. We are only trying to force the upstream enterprises to reduce the price to make this appeal."

The person further told reporters that "since last year, the warp knitting enterprises have introduced too many equipment, expanded their capacity rapidly, and had a large stockpile of raw materials and products in the warp knitting enterprises.

At present, we are in the off-season of the warp knitting industry. We feel that it should be a good adjustment period for industries. We will take this opportunity to call on enterprises to stop production, reduce inventory and speed up the withdrawal of funds, which is also a consideration of protecting enterprises.

"In addition, over the past year, chemical fiber enterprises are increasing their prices. We also hope to take this opportunity to appeal to the chemical fiber enterprises to reduce the price of raw materials slightly, or to adjust their profit margins slightly to adjust the range that our downstream warp knitting enterprises can withstand," the people added.

Securities Daily reporters learned from public data that in the first half of 2018, Haining warp knitting industry achieved a total output value of 13 billion 200 million yuan, an increase of 16% over the same period, with a total profit of 595 million yuan, an increase of 5.3% over the same period last year.

Enterprises stop production because of market considerations.

Like leather and home textiles,

It is listed as one of the pillar industries in Haining.

The only warp knitting characteristic Park in Zhejiang, the Haining warp knitting industrial park, is located in Ma Qiao street, Haining.

In August 9th, the Securities Daily interviewed a number of warp knitting enterprises in Haining warp knitting industrial park, and understood the current production and operation status of enterprises and how to view the fluctuation of industries caused by the increase in raw material prices of upstream enterprises.

In the park, the chairman of a warp knitting enterprise, who does not want to be named, told the Securities Daily reporter that in fact, the problem of price increase and price reduction should not be entangled too much. The price increase and price reduction are market behaviors, and the relationship between supply and demand determines the price relationship.

He believes that the downstream warp knitting enterprises have such a big objection to the price rise of the upstream enterprises because the terminal market faced by the warp knitting enterprises is not very prosperous, facing the increase of the upstream enterprises, the warp knitting enterprises can not carry on.

In view of the current "buid-off" crisis, the chairman believes that it is not a permanent solution.

He laughs, "enterprises need to bear bank loans, pay the corresponding interest, pay taxes and pay taxes, and deal with staff resettlement.

Once the production is shut down completely, enterprises can only drink the west wind.

The chairman told reporters: "some of the enterprises that stop production are mostly motivated by spontaneous actions, which are not much related to the initiative of the association.

All enterprises have different raw materials and orders in their own hands.

For enterprises, if there is a reasonable profit margin, they will continue to produce. Enterprises who are not profitable, lose money or fail to receive orders will have to rest first. "

In the course of the Haining Securities Daily, reporters went to visit more and more enterprises such as Yuexing Warp Knitting Co., Ltd. in Zhejiang, Haining Steel Co., Ltd. and Hongfa Knitting Co., Ltd., and the warp knitting Association's view of "de Stocking" was confirmed.

Reporters found that almost every enterprise's plant, densely packed a large number of DTY polyester, polyester and nylon and other raw materials, most of which came from Zhejiang's local shares, such as Tong Kun, new Feng Ming and Rongsheng petrochemical.

Tycoon.

The finished warp knitted products are also stacked on the other side of the plant.

When it comes to shutting down production, different warp knitting enterprises react differently.

Reporters found in the interview process, some enterprises are really crowded, the production workshop is tight, the reporters are free to enter the factory area storehouse and no one is watching; some enterprises produce machines roar, the workshop is brightly lit, the storeroom is busy shipping, and several enterprises are still releasing the recruitment information for the technical jobs on the LED screen at the gate of the factory area.

Price rises of chemical fiber enterprises

What are the reasons for the sharp rise in prices of chemical fiber enterprises? Will the closure of warp knitting enterprises affect the operation of chemical fiber enterprises? With these questions, Securities Daily reporters entered the world's largest polyester filament production enterprise - Tong Kun.

Song Hairong, deputy director of securities affairs of Tong Kun, said that the price of polyester filament produced by the company was mainly due to the increase in raw material prices, which led to a substantial increase in the cost of production. The source was oil and exchange rate.

He told the Securities Daily reporters that the international crude oil prices climbed all the way in 2016 and 2017, and the highest price in 2018 has broken through 75 US dollars / barrel. In addition, the exchange rate of RMB has changed, and the cost of oil import of chemical fiber enterprises has increased significantly.

In addition, PX and ethylene glycol, which are the main raw materials of the company's products, are mainly imported from abroad. Due to the depreciation of the RMB exchange rate, the production cost of PTA and polyester has been raised correspondingly.

Securities Daily reporter admitted, "in fact, in the process of price increase, the company has fully taken into account the low concentration of downstream enterprises, the weak premium capability, and the existence of the order cycle.

From June 22nd to August 3rd, the upstream raw materials increased by 1480 yuan per ton, but at the same time, the price of our filament products increased by only 600 yuan per ton.

The price increase of the company is far less than that of raw materials.

At the expense of our own interests, we have made concessions to downstream enterprises. "

Zhou Jun stressed: "upstream and downstream is not only a cooperative body, but also a coexistence body.

Partners are the same. The whole industry is an organic community of destiny.

Therefore, both sides must calm down.

Craziness and impetuosity.

When asked whether the closure of downstream warp knitting enterprises would have an impact on the sales of polyester filament, Zhou Jun said that the demand for warp knitting industry accounted for only 10% of the production of polyester filament, and the remaining 90% demand was mainly concentrated in weaving, knitting, wool spinning and other industries, which had little impact on the company.

Xia Ting, a business analyst, believes that the crazy price increase of the chemical fiber factory may be a domestic trade war brought about by the Sino US trade war. The chemical fiber industry should pay more attention to it and treat it with caution instead of speculation.

In order to promote this

The supply side reform will promote the virtuous circle of the industrial chain, and the upstream and downstream should support each other urgently. We should give a positive response to the shouting of the downstream, so that we can go further and further.