Sanfangxiang, Hengyi, Jinlun High Fiber And Other 15 Enterprises Gather, Staple Fiber Futures Listed, Listen To Them How To Say?

This year marks the 30th anniversary of the establishment of China's futures market and the 30th anniversary of the establishment of Zhengzhou Commodity Exchange (hereinafter referred to as "Zhengshang exchange"). On October 12, China's futures market ushered in a new variety, short fiber futures listed on the Zheng Shang exchange. Fang Xinghai, vice chairman of China Securities Regulatory Commission, and Dai Baihua, vice governor of Henan Province, jointly announced the listing of staple fiber futures on the same day.

From the industry point of view, after PTA futures, China's polyester industry chain ushered in a new variety of futures. At the same time, staple fiber futures are also the first futures varieties of chemical fiber products.

In recent years, what is the overall development of China's polyester staple fiber market? In this year's special market environment, although the operation of polyester staple fiber market is not as good as the same period last year, why is it still better than expected? What are the operating pain points of polyester staple fiber enterprises at this stage? Based on the mature operation of PTA futures and high correlation of futures price, what impact will be brought to polyester staple fiber enterprises and polyester industry chain related enterprises after the listing of staple fiber futures? How should industrial enterprises make better use of futures tools to comprehensively manage business risks?

On the day of the listing of staple fiber futures, the Zhengshang exchange also held a seminar on staple fiber industry. In view of these hot topics, relevant persons in charge of 15 domestic polyester staple fiber enterprises, including Sinopec Yizheng Chemical Fiber Co., Ltd., Sanfangxiang Group Co., Ltd., Fujian Jinlun High Fiber Co., Ltd., as well as relevant traders and futures companies, conducted in-depth discussions at the seminar.

Polyester staple fiber products have great potential

Polyester staple fiber is one of the downstream products of PTA. It needs 0.86 t PTA and 0.34 t ethylene glycol (MEG) to produce 1 ton PET staple fiber. Pet is a kind of staple fiber produced by polymerization of PTA and ethylene glycol through spinning, stretching and cutting in molten state.

In terms of production process, there are two kinds of polyester staple fiber production in China, including melt direct spinning and chip spinning. Melt direct spinning is the mainstream advanced technology in China's polyester industry in recent years. It is characterized by process integration, large scale, large single line production capacity and high production efficiency. It is the main production process adopted by domestic polyester staple fiber manufacturers.

After decades of rapid development, polyester staple fiber has become the second largest variety of chemical fiber in China, and the first variety is polyester filament. At present, China is the largest producer and consumer of polyester staple fiber in the world.

According to relevant statistics, in 2019, the total production capacity of China's polyester staple fiber is about 7.585 million tons, and the output is about 6.15 million tons. In the same period, the output of polyester filament is about 37.31 million tons, viscose fiber is about 4.124 million tons, and nylon is about 3.5 million tons.

Statistics from the National Bureau of statistics and China Chemical Fiber Industry Association show that from January to July this year, China's output of polyester staple fiber is about 5.9534 million tons; in the same period, the output of polyester filament is about 20.3889 million tons, that of nylon is about 2.3494 million tons, and that of viscose staple fiber is about 1.9935 million tons.

From the perspective of downstream applications, polyester staple fiber can be divided into three categories: spinning, filling and nonwoven. Spinning is the main use of polyester staple fiber. Polyester staple fiber is an important raw material in cotton and wool spinning industry. It can be spun alone or blended with cotton, regenerated cellulose fiber, hemp, wool and other fibers to form yarn, which is widely used in knitted and woven clothing products. At the same time, polyester staple fiber is also widely used as filling material for clothing, household and other products. For example, in winter with good thermal effect of cotton padded jacket liner, bedding in the core and pillow core, all kinds of plush toys need to be filled, as well as sofa and other household goods need to be filled, all of which are inseparable from polyester staple fiber.

Polyester is also widely used in the staple fiber industry. Especially in the context of global epidemic prevention and control this year, the demand for various kinds of masks, sanitary wipes, medical supplies and other fields has increased rapidly, which has led to the rapid increase in the demand for some polyester staple fiber varieties in the upstream. In addition, polyester staple fiber can also be used in geotextile, leather base cloth, linoleum base cloth and other industrial fields.

According to relevant statistical data, in 2019, China's polyester staple fiber consumption will be about 5.45 million tons, with a year-on-year increase of 14.9%, and both consumption and growth rate have reached new highs in recent years. Among them, 75.2% is used for spinning, and 24.8% is used in non-woven fabric and filling field.

This year's staple fiber market overall better than expected

At present, China's polyester staple fiber manufacturers are mainly distributed in Jiangsu, Zhejiang and Fujian. The annual output of polyester staple fiber in the three provinces accounts for more than 80% of the total output of polyester staple fiber in China. The industry has also formed a number of leading enterprises, such as Sinopec Yizheng Chemical Fiber Co., Ltd., Sanfangxiang Group Co., Ltd., Zhejiang Hengyi Group Co., Ltd., Fujian Jinlun High Fiber Co., Ltd., Jiangyin Huahong Chemical Fiber Co., Ltd., Suzhou Xiangcheng Jiangnan Chemical Fiber Group Co., Ltd., and Jiangxi Huaxi Village Co., Ltd.

In Jiangsu and Zhejiang Province, at the end of August this year, with the completion and commissioning of Yizheng Chemical fiber project with an annual output of 200000 tons, the company has 48 polyester staple fiber production lines with an annual production capacity of 1 million tons, and has 5 bottle level chip production lines with an annual production capacity of 450000 tons.

At present, the annual production capacity of polyester staple fiber of Sanfangxiang group is about 800000 tons, and the annual production capacity of bottle grade polyester chip is 2 million tons. In recent years, Hengyi group has rapidly expanded the annual production capacity of polyester staple fiber through acquisition and merger of Jiangsu Xiangsheng and other enterprises. At present, Hengyi group has four polyester staple fiber enterprises, and the annual production capacity of polyester staple fiber is about 1 million tons. Jiangsu Huahong Industrial Group Co., Ltd. has a number of subsidiaries. The main producers of polyester staple fiber are Jiangyin Huahong chemical fiber and Jiangyin Hongkai chemical fiber, with an annual production capacity of about 500000 tons. The annual capacity of Huaxi polyester staple fiber is about 400000 tons.

In Fujian Province, Jinlun high fiber is one of the leading polyester enterprises in South China. The company not only produces polyester filament, but also polyester staple fiber. The annual production capacity of polyester staple fiber is about 500000 tons.

Under the background that the economic operation of all walks of life is seriously affected by the epidemic this year, the polyester staple fiber industry is also difficult to be independent, and the enterprise operation and market operation are inevitably affected. But many enterprise leaders reflect that since this year, the operation of polyester staple fiber market is not as good as last year, but better than expected.

At the seminar, Zhao Jianfeng, manager of chemical fiber Sales Department of Sanfangxiang Group Co., Ltd., pointed out that the price of polyester staple fiber has been basically at a historical low level since this year. This situation also occurred during the global economic crisis in 2008, but the duration of low price was relatively short at that time. The epidemic situation has a great impact on the export of staple fiber products. In normal years, the export volume of staple fiber products of Sanfangxiang group accounts for about 25% of the total output, but since this year, the export proportion is only about 5%, and the export price is low. The export price of each ton of products is 200 ~ 300 yuan lower than the normal sales price in the Chinese market.

But Zhao Jianfeng also said: "since this year, the market situation of staple fiber is worse than that of the same period last year, but the overall benefit is still good. On the one hand, the domestic epidemic prevention and control situation is very stable, and the enterprise development mainly relies on the internal circulation market; on the other hand, since this year, the original polyester staple fiber market has partially replaced the recycled polyester staple fiber market, so the overall sales volume is still increasing. "

From the data of listed companies, Hengyi Petrochemical's financial report in the first half of this year shows that the company's polyester staple fiber products are in a prosperous situation of production and sales. Among them, Suqian Yida, a subsidiary of polyester staple fiber, had a revenue of 860 million yuan in the first half of the year and a net profit of 29.9386 million yuan. According to the financial report data of Huaxi Co., Ltd., in the first half of the year, the sales volume of its core product polyester staple fiber was 195900 tons, an increase of 6.38% year-on-year. Although the output decreased by 2.61% to 189100 tons, the inventory decreased by 54.08% compared with the beginning of the year. During the period, the gross profit of polyester staple fiber products reached 82 million yuan, an increase of 36.67% year-on-year, and the gross profit rate was 7.43%, with a year-on-year increase of 3.08 percentage points.

From the perspective of performance in the capital market, especially in the first quarter of the grim situation of epidemic prevention and control in China, due to the theme of "epidemic prevention", the stock prices of several main polyester staple fiber enterprises such as Huaxi Co., Ltd. have successively pulled out multiple trading limits, which have attracted the attention of the capital market.

Staple fiber futures provide risk management tools for enterprises

Before the listing of staple fiber futures, PTA futures have been on the polyester industry chain. PTA futures has become a "Star" variety in China's futures market since it was listed on the Zhengzhou stock exchange in 2006.

At present, 90% of PTA production enterprises, trading enterprises and 80% polyester enterprises are using PTA futures to manage risks. In the past few years, PTA has been playing the best role in the domestic futures market, especially in the chemical industry. On November 30, 2018, PTA futures also successfully introduced foreign traders, further enhancing the international representativeness of China's PTA futures prices.

After the listing of staple fiber futures, what actual changes will be brought to industrial enterprises and polyester industry chain with the effective play of its functions?

Zheng Baoyou, chairman of Fujian Jinlun High Fiber Co., Ltd., said at the seminar: "I have been paying attention to the listing of staple fiber futures in recent years. In the past, due to the fluctuation of staple fiber market price, downstream factories ordered polyester staple fiber from us, but we basically did not order large orders. Once the market changes, the product is difficult to sell. After the listing of staple fiber futures, the chain from PTA to polyester staple fiber will be broken through, which will help to stabilize the price of staple fiber, and will also make the processing costs of various enterprises more stable. Next, if the polyester industry chain can add another futures variety, the whole polyester industry chain can form a greater joint force. On the whole, the Futures Commission will play a role in regulating the market price and will help polyester staple fiber enterprises to operate stably

"Under the spot sales model, once the price of staple fiber products shows a downward trend, downstream customers will not be motivated to purchase," Zhao said. At this time, staple fiber enterprise products will often form inventory. In order to deal with this situation, staple fiber enterprises can adopt the response method is often the device shutdown. However, for continuous production enterprises, parking will generally bring cost and equipment wear and tear problems. After the listing of staple fiber futures, when the spot enterprises are faced with the above situation again, they can effectively use the futures tools to form a certain amount of hedging in the futures market and comprehensively manage the operational risks

Hengyi Petrochemical Co., Ltd. related person in charge said that physical enterprises generally have two worries in spot operation, one is that the price of products is not high, and the other is that they are afraid that the products can not be sold. Forward price discovery and hedging are two major functions of futures, which help enterprises to solve these two major pain points.

Liu Dewei, general manager of the petrochemical center of Xiamen International Trade Group Co., Ltd. and chairman of Xiamen Tongxin, pointed out that the spot market sales of polyester staple fiber are scattered and uncertain, and the product prices of different brands and enterprises are also different. A transparent futures and futures platform will be formed.

Zhu Shaowei, general manager of operation of Fujian new Jingwei New Fiber Technology Industry Co., Ltd., pointed out that when the supply and demand of polyester staple fiber market is relatively good, downstream customers often buy a large number of goods when the polyester staple fiber price is low, and stop and wait when the price of polyester staple fiber is high. Down the whole year, the business efficiency of polyester staple fiber enterprises is often in a "flat light" state. After the listing of staple fiber futures, it can provide a new sales channel for spot enterprises and a new pricing reference platform for enterprises.

Jiangyin Hongkai chemical fiber company's relevant person in charge said that in the polyester industry chain, traders often have a regional. The listing of staple fiber futures will bring new changes to the market participants and the market flow pattern, and will have a certain impact on the market competition pattern.

However, a number of enterprise leaders also said that a new futures product from the listing to the effective function, usually need to go through a market cultivation period. In the next step, if industrial enterprises want to participate in it, they should learn more about futures, grasp the core functions of forward price discovery and hedging of futures instruments, carry out inventory management, processing fee management, etc., and comprehensively manage risks.

The reporter learned from Zheng Shang that, from the present point of view, after the listing of staple fiber futures, the enterprises involved are mainly traders and large enterprises implementing the "PTA polyester polyester" integrated development mode. They have accumulated rich experience in PTA futures market, familiar with futures market and flexible in investment operation.

At the short fiber industry seminar, the relevant person in charge of Zhengshang exchange said that the listing of staple fiber futures is of great significance for building the futures plate of the whole polyester industry chain. After the listing of PTA futures, after 14 years of careful cultivation, it has a solid industrial foundation, which can be said to be "deeply rooted". Based on the good development of PTA futures, from the actual needs of industrial enterprises, Zhengzhou Shangri arranged and constructed the whole polyester futures varieties plate from point to line and then to surface, continuously improved the varieties of polyester plate, and better served the whole polyester industry chain.

Effective use of futures tools to help the stable operation of the industry

China's futures market has developed for 30 years this year, and has become an important part of China's modern financial system, and plays an important role in serving the real economy and national strategy.

Fang Xinghai pointed out at the listing of staple fiber futures that in the face of the impact of this year's epidemic, the futures market has achieved steady progress, which has strongly supported the recovery and development of the real economy. The function of risk management in futures market has been tested again under extreme market conditions.

For this, part of China's leading chemical fiber enterprises feel quite deep. Since this year, affected by the epidemic situation, PTA spot enterprises' inventory pressure has increased unprecedentedly, and the social inventory is high. In view of this market situation, many enterprises pay more attention to the use of futures tools for risk management, and effectively respond to the impact of the epidemic.

The relevant person in charge of Hengyi Petrochemical Co., Ltd. said at the seminar that from the company's application effect of PTA futures in recent years, it has played an important role in stabilizing production and operation. From the profit data of Listed Companies in the first half of the year, we can see that the effective use of futures has brought real value to the company.

Wen Hao, deputy general manager of Hengli Petrochemical (Dalian) Co., Ltd., pointed out at the seminar that in the face of this year's sudden epidemic situation and market fluctuations, the enterprise has more profoundly discovered the changes of futures on the real market. At the beginning of the outbreak, no downstream enterprises bought goods. However, Hengli Petrochemical produced products continuously for 24 hours. During that period, the warehouse was full of stocks. When the "black swan" event comes, futures become a very important tool for enterprises to manage risks.

"Since this year, through hedging in the futures market, we have locked in some profits that may be narrowed in the future in advance during the period when PTA processing fees are better, so as to avoid the reduction of processing fees in the off-season. When the spot market is not good, you can not sell goods, because you have sold the goods on the futures market in advance. In this way, the sales pressure in the spot market is greatly reduced. It is because of PTA futures, in this year's extreme market environment, China's PTA market has appeared the coexistence of high inventory and high processing costs. From the beginning of the year to October 11, the processing cost of PTA reached 620 yuan / ton, which is still ideal, much better than what we expected at the beginning of the year. Without futures, it would be impossible. Our experience has certain reference significance for you polyester staple fiber enterprises, "said Wen Hao.

According to the relevant person in charge of Zhengshang stock exchange, with the "agglomeration effect" of futures varieties in polyester industry, a more diversified risk management system will be built for China's polyester industry chain, so as to better assist the comprehensive risk management of polyester industry and operate more steadily.

Industry insiders also pointed out that China's chemical fiber production and consumption have been the first in the world for many consecutive years. With the help of polyester industry chain futures varieties, it will help to enhance the pricing power of China's polyester industry in the global polyester market, as well as the overall competitiveness and influence in the world.

"In recent years, the export volume of China's polyester staple fiber products has shown an overall increase trend. After the futures market is listed, the spot enterprises can quote the fixed price required by foreign customers according to the forward futures price, and lock the processing range in advance through hedging, which is conducive to improving the pricing power of China's polyester staple fiber enterprises in the global market. " Liu said.

"On the basis of 30 years' development, China's futures market has been able to become an important global pricing center. At present, China's futures market has played an important role in serving the development of the real economy, especially during the epidemic period. The next step is to enhance the international influence. It is necessary to focus on solving the practical problems in China's economic development, respond quickly to the risk management of real enterprises and the demand for quality and efficiency of industries, so as to effectively serve the national economic development, and ensure that it does not take a detour and is modern We should make due contributions to chemical construction. " Fang Xinghai said at the Symposium on the 30th anniversary of Zhengzhou Commodity Exchange and China futures market.