Synthetic fibers and resin glue turning point coming mainstream manufacturers to raise prices

Mainstream manufacturers to raise prices : Although currently in the off-season , but the industry due to low inventory , viscose producers are at a high capacity utilization rate , making the prices of mainstream manufacturers sufficient power . Friends of the three chemicals, Jiang Su Xiangsheng and Sateri today are raised ex-factory price of viscose staple fiber 200 yuan / ton. Total production capacity of 1.1 million tons of the three , about 30% of the total capacity of the country , is expected to enhance the industry average .

Industry capacity slowdown : viscose industry experienced in 2010 after the 2011 release of new capacity and the high point in 2012 and 2013 with an annual capacity growth rate of 12.8 % and 13.0% , relatively stable. But we can observe a new industry in 2014 was only 260,000 tons of production capacity growth , the growth rate was only 6.7% . We believe that productivity growth slowed in favor of changing the industry supply and demand pattern, enhance the industry operating rates.Wholesale masking tape


Demand remained high : nearly two VSF more than 20% annual growth rate , higher than the 10% cotton blended fabrics demand growth . The main reason is the substitution of cotton for the textile viscose advantage is still evident. Since the state purchasing and storage policy making in recent years, cotton prices will remain at the level of 20,000 yuan / ton , while the adhesive is subject to overcapacity prices continue to fall , making the price difference between the two is slightly highs, spreads exist to stimulate enterprises to increase downstream viscose willingness to use the ratio , thereby stimulating the viscose production growth .Masking tape


Improve supply and demand spawned industry inflection point : changes in supply and demand growth prompted the industry operating rate to gradually return to historic highs. We expect that next year industry operating rate will be above 95 % at full load operation state . Rising capacity utilization and lower highs in the background, we believe that the bargaining power of viscose enterprises will gradually strengthen . Given the current price of viscose staple fiber industry is basically in line costs , prices will strongly enterprises , we determine the next two years, the industry boom will gradually upward. With the advent of downstream demand after the Spring Festival season , in the current context of low stocks and high industry operating rates , the viscose industry inflection point is coming.Sellotape


Recommended Aoyang Chemical Technology and three friends : viscose staple varieties are strong cycle , viscose prices for a significant impact on the performance of listed companies . Assuming annual average price rose VSF 1,000 yuan / ton , can be thickened Australian foreign technology , the three friends Chemical earnings per share were 0.28 yuan , 0.16 yuan .

Risk Warning : demand growth lower than expected ; rising raw material costs magnitude faster.Washi tape