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"This round of PTA price increase is mainly attributable to the transmission mechanism of the previous increase in cotton prices. From cotton to polyester, to polyester products and PTA, it can be said that the increase in cotton prices has led to an increase in the price of the entire industry chain." Researcher Yan Jie told reporters.
It is understood that the downstream products of PTA, polyester polyester filament and polyester staple fiber, are the raw materials of textiles and garments as well as cotton. Among them, polyester staple fiber can be used as a substitute for cotton, and the market demand for it is also sharp due to the sharp rise in cotton prices. Promote.
In China, there are large enterprises producing PTA, but the number is small and the market supply is unbalanced. About 30% of PTA rely on foreign imports. As of the end of 2009, there were 17 PTA manufacturing enterprises in China. In the A-share market, companies affiliated with PTA mainly include four companies: S Yihua, S Shang Pei, Zhuhai Port and Rongsheng Petrochemical.
The fluctuation of PTA price has more obvious influence on the above-mentioned enterprises. Rongsheng Petrochemical's prospectus shows that the polyester polyester industry is greatly affected by the upstream PTA, MEG industry and the downstream textile industry. Coupled with the cyclical changes in the industry itself, the company's gross profit margin fluctuates greatly. In the first half of 2010, 2009, 2008, and 2007, the company's main business gross margins were 17.18%, 13.62%, 3.40%, and 7.56%, respectively.
At the same time as the production of PTA, the above four companies also produce polyester products. Therefore, the impact of PTA price increases on these companies varies. Rong Sheng Petrochemical director Wei Quanying said: "For the company, PTA products in addition to part of their own use, there are some exports, so they can enjoy the benefits of PTA prices."
In general, the recent surge in polyester products has expanded the profitability of these companies. “At present, raw materials such as naphtha and PX that are used to produce PTA have not risen sharply, and the price of polyester products has already absorbed the pressure of rising prices of polyester raw materials in advance. Therefore, the impact of this round of PTA price increase on these companies is more pronounced. Actively," Jie Jie told reporters.
It is reported that PTA project investment is relatively large, the country has not yet fully liberalized, and the investment cycle is longer, the fastest to be completed within 3 years, so in the business cycle, generally do not appear blind expansion. If cotton prices remain high, domestic PTA companies will become long-term beneficiaries.
PTA receives the baton where the price of cotton rises
Following the polyester, PTA recently took over the baton where the price of cotton rose, and the consecutive three-way limit of PTA futures made related companies a hot spot for the market.