The Supply Pressure Of Direct Spinning Polyester Staple Industry Will Be Highlighted In The Future.

With the introduction of the policy of prohibition of waste in the second half of 2017, the price advantage of recycled polyester staple fibers has been gradually lost, and the direct spinning staple industry has benefited, and the direct spinning polyester staple industry has once again witnessed a wave of concentrated expansion. However, the traditional demand growth is limited, with the increasingly fierce market competition, the pressure of oversupply will be greater in the future.

In 2019, the direct spinning polyester staple fiber industry was newly commissioned 520 thousand tons, with a total capacity of 7 million 871 thousand tons, up 7.07% from the same period last year. The new capacity is mainly made of conventional cotton staple and filled staple fiber. In 2019, the new capacity was mainly Hengyi petrochemical, Suzhou Jiangnan, Jiangyin Xiangyang, Yangzhou and so on. The details are as follows:

Two thousand and nineteen Details of new commissioning equipment for direct spinning polyester staple fiber industry

Corporate name	Capacity (10000 tons) / Year)	Commissioning time	Device address	accessory products
Yangzhou	Fifteen	Two thousand and nineteen February 2013	Yangzhou	Low melting point and hollow staple fiber
Jiangsu Xiangyang	Eight	Two thousand and nineteen April 2013	Jiangyin	Polyester staple fiber
Suzhou Jiangnan	Ten	Two thousand and nineteen May 2013	Suzhou	Polyester staple fiber (regeneration line)
Suqian Yida	Twelve	Two thousand and nineteen Year 5, June	Suqian	Polyester staple fiber
Fujian Yi Jin	Seven	Two thousand and nineteen August 2013	Jinjiang	Polyester staple fiber

In actual production, the actual output of domestic direct spun polyester staple fiber in 2019 1-10 was 5 million 215 thousand and 900 tons, an increase of 14.99% over the same period last year. Specifically, the output of direct spinning polyester staple fiber industry increased significantly over the past 1-4 months, but there was no significant increase in downstream demand. The terminal orders were not as strong as the trade environment in recent years due to the aggravation of the trade environment. The supply of polyester staple fiber industry was slightly oversupplied. With the higher raw material prices, the profitability of the industry declined. Some companies appeared to stop or overhaul production in May, resulting in a certain decline in the output of the industry. In 7-10, due to the continued production of domestic capacity and the substantial reduction in the cost of polymerization, the direct spinning polyester staple fiber has replaced some other cotton textile raw materials in other fields, so the output in this year is obviously higher than that in previous years.

In the future, it is estimated that there will be a total capacity of 770 thousand tons of new capacity in the direct spinning polyester terylene industry in 2020, when the industry's new capacity will reach 8 million 641 thousand tons. Specifically, the new capacity of the future will be diversified, especially the production of hollow staple fiber. It is mainly due to the loss of the price advantage of recycled hollow staple after the implementation of the policy of prohibition against waste. Since 2019, the cost of polymerization has been decreasing, and the price advantage of the primary hollow market is becoming more and more obvious. The price difference between the two often runs between 200 yuan / ton. The long term low price difference makes the original hollow occupy the majority of the recycled hollow market share, and also promotes the profit of the hollow hollow staple fiber in the operation of 1000 yuan / ton, which has attracted another round of expansion of the industry.

2019-2020 Statistics on new capacity of polyester staple fiber in 2005

Enterprise name	Products involved	Installed capacity	Installation location	Estimated time of production
Huaxi Village	Polyester staple fiber	Ten	Jiangyin	Two thousand and nineteen By the end of the year or early 2020
Foville	Original three dimensional hollow staple fiber	Five	Yangzhou	Two thousand and twenty Early year
Fujian Yi Jin	Polyester staple fiber	Seven	Jinjiang	Two thousand and twenty Year Q1
Suqian Yida	Polyester staple and hollow staple fiber	Thirty	Suqian	Two thousand and twenty Year Q2
West Yizheng	Polyester staple and hollow staple fiber	Twenty	Yangzhou	Two thousand and twenty year
Ningbo Quan di	Hollow staple fiber	-	Ningbo	Two thousand and twenty Year Q2

Source: lung Chung

However, with the outward transfer of labor intensive industries and the promotion of international trade barriers, the growth of China's traditional textile industry has been slow, and the spinning field as the most important consumer market of PET staple has been greatly affected. Although the cost of polymerization is decreasing, the price advantage of polyester staple fiber is highlighting, but the growth of consumption is difficult to exceed the growth of the supply side. The competition pressure of the direct spinning polyester staple industry in the future will gradually increase.