Rongsheng Petrochemical Company Intends To Reclaim 6 Billion 731 Million Yuan And Invest 6 Million Tons PTA Project Annually.

In September 18th, Rongsheng Petrochemical announced that in order to further enhance the company's perfect industrial chain advantage and enhance its market competitiveness, expand the market scale of the company's products and reduce the unit cost of the products, Zhejiang Yisheng New Material Co., Ltd. (Yisheng new material), a subsidiary of the company, intends to invest in capital construction. "Annual output of 6 million tons PTA project" The project is implemented in two phases, and the total project is expected to be completed. The investment is 6 billion 731 million yuan.

The project calls for the use of its own advanced PTA production process, fully relying on the utility engineering of the aromatics plant of Ningbo CICC petrochemical company. The construction conditions are convenient, which will greatly help enhance the overall cost competitive advantage of the company, and will not have a significant impact on the company's financial position.

Up to now, the domestic PTA capacity has increased to about 47 million tons. Yisheng, Hengli, the original Far East, the original Xiang Lu four enterprises accounted for more than 60% of the existing capacity, the domestic PTA industry has completed the reversal of the leading power from state-owned enterprises to private enterprises, and the market has turned from oversupply to oversupply.

Today's PTA format is that state-owned enterprises control the upstream raw materials for xylene (PX), which is also a deep reason for the old, small and high energy PTA devices owned by state-owned enterprises, and the largest and smallest device of PTA is 10 times larger. However, with the difference in energy consumption between the current size and the installed units of about 260 yuan per ton, the resource advantages and matching advantages of state-owned enterprises can basically offset the difference in energy consumption, and with the social problems such as equipment shutting down and personnel placement, state-owned enterprises can not simply quit.

Private enterprises control downstream PTA and polyester, coupled with the current private capital investment in the field is not much, it is more difficult to let it have occupied the dominant industry. State owned and private sectors control each stage, which determines that it is difficult to promote excess capacity by market factors alone, and the game will continue. But from reducing carbon emissions and other social benefits and industrial development, it is a choice sooner or later to take the initiative to eliminate backward production capacity.

After developing the complete set of technology of intellectual property rights in China, the cost of imported technology has been reduced, and investment has been greatly reduced. China has formed the coexistence pattern of state-owned enterprises and private enterprises, and soon becomes the first big country in the global PTA industry.

In the future, as new devices are put into production and load increases, the supply of PTA is expected to increase gradually, and PTA will gradually enter the stage of oversupply.

Since August, the difference of PTA processing has fluctuated between 800~1000 yuan and ton. Although the level of the previous 2000 yuan / ton has dropped a lot, but considering that the subsequent PTA will face oversupply, the current production profit level is still acceptable. Following the launch of new capacity, PTA production profits will be further compressed in anticipation of oversupply. Based on the expectation of excess supply of PTA in the future, the current PTA production profit is still acceptable. Therefore, the current PTA manufacturers' willingness to overhaul is not strong.