High oil prices lift the cost of the chemical fiber industry is squeezed

The National Development and Reform Commission raised the price of refined oil once again from March 20. Affected by the rise in oil prices, the related petrochemical sector rose yesterday, but the chemical fiber industry, which uses oil as its raw material, was hit and the performance of the disk was weak. Analysts pointed out that the chemical fiber industry is facing greater and greater difficulties as raw material costs continue to rise and downstream demand remains weak.

Increased cost of compressed profits SWS data show that as of March 19, polyester raw materials rose significantly, PTA rose 100 yuan to 11,700 yuan / ton, ethylene glycol rose 150 yuan to 9950 yuan / ton, polyester staple fiber fell 200 yuan Reported 14,850 yuan / ton, viscose filament rose 500 yuan reported 52,000 yuan / ton, cotton pulp short-stapled stable at 21,500 yuan / ton, cotton pulp-filament grade steady at 23,000 yuan / ton.

He Yuexiang, a chemical fiber analyst at Business Club, said that the impact of rising oil prices on the chemical fiber industry is relatively straightforward. For example, ethylene glycol, polyester chips, polyester polyester, and nylon are directly affected by the price of oil. The price of these raw materials is almost entirely driven by cost. The direct impact of rising oil prices on downstream companies is the increase in costs and the reduction of corporate profits. If companies cannot effectively transfer cost pressures, the operations of related chemical companies will face difficulties.

However, Zheshang Securities analysts believe that the petrochemical market will not react too quickly to the drop in oil prices; if the oil prices continue to fall, despite the fact that the cost of the chemical industry will decline, the demand will also decline, and the overall outlook will be negatively affected. Once the long-term trend of crude oil prices declines, the chemical industry will be negatively affected.

When crude oil prices rise, downstream chemical products will also increase their prices, and the general price increase will be greater and the profit margin will be greater. When crude oil prices fell, the general chemical industry performed generally. The increase in crude oil prices will firstly increase the gross profit margin for crude oil extracting enterprises, and the cost of enterprises in the middle and lower reaches of the crude oil industry chain will increase at the same time. As the cost rises, the final consumer goods prices will also increase.

The increase in crude oil prices generally refers to upstream benefits from downstream involvement, and the degree of impact still needs to be considered in many ways. This depends on the ability of the industry to absorb rising oil prices. Specifically, crude oil and other costs caused by rising crude oil account for the proportion of production costs in the industry. , the ability of the industry to shift prices downstream, improve the level of technology, and improve the potential of cost structures. Although the chemical fiber industry as a whole is facing the test of profit compression brought about by the continued upward movement of oil prices, individual varieties such as PTA and polyurethane still have growth potential.