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PTA Big Three Limited Production Price Is Hit By Downstream Enterprises "Crusade"

2014/6/12 8:39:00 44

Since the end of May, < a href= "//www.sjfzxm.com" > PTA > /a > three giants -- Yisheng, Hengli and Xiang Lu jointly limited production to achieve the goal of price increase, resulting in collective encirclement and suppression of downstream polyester enterprises. At present, the trend of "crusade" is expanding constantly. Last Friday, 5 major polyester enterprises in Fujian issued a joint statement saying that the PTA supplier's decision to change the settlement price of the contract at the beginning of the year will be appealed to the law. On Tuesday, nearly 20 Chinese and eastern Jiangsu and Zhejiang enterprises joined the Crusade force, and issued a joint statement to boycott the PTA plant's new pricing model. According to the latest news of the Shanghai Securities Daily reporters, under the condition that the profits are guaranteed, some of the PTA devices will resume gradually. 
 a salesperson from a polyester enterprise in Zhejiang told reporters that the price increase of PTA since May this year is too obvious. Over the past few years, the domestic chemical market has abundant capacity and even overcapacity, and the profits of related enterprises have shrunk. It is also under this premise that the PTA plant takes measures to limit production and "artificially leads to tight supply to ensure profits". After the Yisheng, Hengli, Xiang Lu joint control device load agreement was reached, the settlement price of the May contract increased to 6600 yuan / ton level. The spot market is in short supply. The price of PTA has risen from below 6000 yuan / ton integer pass to 7000 yuan / ton, and it has risen more than 1000 yuan / ton in less than a month. 
 for upstream production companies to limit production, downstream manufacturers take toxic measures to jointly reduce PTA inventory and reduce the start-up load rate to less than 70%. Last week, five main polyester enterprises in Fujian, such as Jin Lun, Bai Hong, Jingwei, Xin Donghua, Hongxin special fiber, said, "it is proposed to jointly reduce the start-up load to 70% or even lower, and consider reducing some PTA < a href=" //www.sjfzxm.com/news/index_f.asp "> Supplier" /a > contract ratio or even cancel the contract ". The five enterprises involved polyester production capacity of 2 million 200 thousand tons. 
 for this, Zhang Junjia, an analyst at annex, said Fujian's boycott statement had "demonstration effect". On Tuesday, nearly 20 Jiang and Zhejiang enterprises, including Huarun, Huahong and Huaxi Village, issued a boycott statement, roughly the same as the Fujian model. A statement issued by Jiangsu and Zhejiang enterprises said: "PTA suppliers intend to unilaterally tear up the annual contracts signed with their customers, and try to unilaterally alter the mechanism of long-term pricing in the market and price them at cost. We strongly condemn and protest this. Some PTA suppliers attempted to spanfer losses to polyester factories with long losses in the form of joint monopoly and unilateral breach of contracts, which seriously violated commercial integrity, violated the contract law of the People's Republic of China, suspected of violating the People's Republic of China anti unfair competition law and relevant laws and regulations, and seriously disrupted the market rules of polyester industry. 
 this is not the end. According to industry sources, this Saturday, Jiangsu and Zhejiang polyester factories will continue to discuss the issue of lighten up against PTA alliance. 
, however, PTA Enterprises Limited production very price policy effect is remarkable, production began to profit. Driven by interests, some devices will gradually resume. According to the latest understanding of the Shanghai Daily reporter, Xiang Lu Petrochemical 1 million 650 thousand tons PTA plant plans to restart, Jiangyin Han Bang 600 thousand tons PTA device ended in June 19th to stop maintenance, Jialong Petrochemical 600 thousand tons PTA device has been restarted, is now increasing load. 
The compromise of PTA < a href= "//www.sjfzxm.com" > Enterprise < /a > has been reflected in the futures market. The recent downward trend of PTA futures price is obvious, and has been declining for three consecutive days. On the 11 day, the PTA main force 1409 contract closed 6744 yuan / ton, down 14 yuan / ton, a strong change. Xia Ting, a business analyst, told reporters that the polyester market has entered the traditional off-season, and the enthusiasm for getting goods from downstream is relatively limited. The three giants' load reduction agreement is unlikely to be carried out, so the price is expected to cool down gradually.