Polyester industrial yarn supply and demand alarm

2022-06-21
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In the face of the surplus of low-end products, experts suggest that polyester industrial silk enterprises should develop some high-end automotive textiles such as automotive safety belt silk and airbag silk

not long ago, the EU made a preliminary anti-dumping decision on polyester high strength yarn originating in China. In the preliminary determination, the EU chose Taiwan as the substitute for calculating the normal value of the products involved in the case, judged that Zhejiang hailide new materials Co., Ltd. did not have anti-dumping, and imposed temporary anti-dumping duties ranging from 7.7% to 9.3% on the other enterprises involved

practicing internal skills well and persisting in the end will pay off.

after learning the news, Ge Junmin, chairman of Zhejiang hailide new materials Co., Ltd., was overjoyed, and her hanging heart was suddenly relieved. He told us that this is only the preliminary decision, and the final decision will be made in December, but the results will not change according to experience. Looking back on the road of responding to the lawsuit in the past year, he sighed a lot

on September 8 last year, the European Commission launched an anti-dumping investigation on polyester high strength yarn originating in China. This is the first time that the EU launched a trade remedy investigation on China's textiles after the expiration of the China EU textile agreement at the end of 2008. The case involved 40 enterprises in mainland China, involving more than US $100million. After the case occurred, Ge Junmin quickly collected materials and organized lawyers to respond to the lawsuit. In december2009, EU officials came to hailide for verification. Within a week, they carefully or even harshly checked the equity structure, governance structure, standardized operation, cost sales price, personnel management, procurement and other aspects of the enterprise, and made such a ruling that made hailide satisfied a few months later

"the data provided by us are true and reliable and can stand the verification of EU officials." When it comes to the reasons behind the phased achievements in responding to the lawsuit, Ge Junmin seems confident. As a listed company, hailide has very strict daily management, and the financial statements, operating data and other information are true and reliable. Ge Junmin analyzed that it is the focus on cultivating internal skills that enables enterprises to remain calm in the face of challenges

zhengjunlin, Secretary General of China Chemical Fiber Industry Association, agreed with Ge Junmin's analysis. Zhengjunlin told that generally speaking, there are two situations for domestic enterprises to win anti-dumping cases initiated by developed regions and countries such as the EU. One is that the enterprise must be a market economy entity that operates independently and assumes sole responsibility for its own profits and losses. The operation is very standardized, and various systems are sound and perfect. It can provide evidence that it has not received government subsidies within three years, and the industrial cost is within the legal and reasonable range. The other is an EU enterprise in which a foreign-funded enterprise or a Chinese enterprise holds shares or even shares. EU regions and countries will take into account the interest demands of their enterprises and industries to make judgments in favor of the region and countries. Hailide's satisfactory result in the preliminary determination actually belongs to the former case. Hailide itself is a listed company with standardized operation and management, so it can provide convincing evidence

zhengjunlin added that it is not enough to have solid data to accurately measure the deformation of pipes and materials. Enterprises should also recognize the situation and actively respond to the lawsuit. Generally speaking, some enterprises think that it is unlikely to win the lawsuit and will cost a huge amount of legal fees. If they feel that it is not cost-effective, they give up responding to the lawsuit; Some enterprises think that they are small and have few exports, so they simply give up the market without considering responding to the lawsuit. Although some enterprises have responded to the lawsuit, when facing the final judgment five years later, the European Union often does not make a judgment, continues to review the enterprises and continues to levy anti-dumping duties. The road of responding to the lawsuit has become a marathon, and many enterprises can not afford it, so they are afraid of difficulties. However, after careful calculation, once the case is won, it will bring a lot of returns to the enterprise. It is possible that in the five years from the filing of the case for investigation to the final judgment at sunset, the successful enterprise will crowd out its competitors and occupy the bulk of the export market. There is hope for responding to the case, and there is no hope for not responding to the case. To this end, the China chemical fiber industry association is also taking advantage of various meetings and forums to mobilize and persuade enterprises to actively respond to lawsuits, and has also invited many lawyers to give guidance to enterprises

zhengjunlin also mentioned that once an enterprise responds to a lawsuit, it must hire a lawyer who is familiar with anti-dumping business, especially the laws and regulations of the European Union and the local accounting standards. In this way, when preparing materials, some potential risks can be avoided within the scope of the law

the short-term contradiction between supply and demand highlights the need to focus on upstream and downstream cooperation.

if the anti-dumping investigation is an external challenge faced by the polyester industrial silk industry represented by polyester high-strength yarn, the increasingly prominent contradiction between supply and demand in the domestic market in recent years is another difficult problem faced by the whole industry

according to gejunmin, by the end of 2009, the production capacity of polyester industrial yarn in China (including Taiwan) was 1067000 tons, and 966000 tons in mainland China, accounting for 50% of the world. After the transition from heaven to hell in 2008, the industry enterprises ushered in a cruel 2009. Affected by the financial crisis, the export shrank and depressed, and the construction was insufficient. In 2010, with the emergence of signs of recovery, the industrial capacity increased. It is reported that a large enterprise in the industry recently launched a 200000 ton industrial silk project. With the commencement of similar projects, the contradiction between supply and demand in the market has become increasingly prominent, which is mainly reflected in the surplus of conventional medium - and low-end products, while the supply of high-end products is beyond the range of affordability due to the high price of carbon fiber. In addition, the development speed of downstream industrial use industry can not catch up with that of polyester industrial yarn industry, which also causes the contradiction of market supply exceeding demand

according to zhengjunlin's analysis, the contradiction between supply and demand in the market and the low profit margin in the industry are temporary and short-term. This contradiction also belongs to a structural contradiction. Now the scale of enterprises in the industrial field is small, and the products are mainly conventional varieties. In view of these problems, zhengjunlin believes that upstream and downstream enterprises should cooperate to jointly formulate product development and sales strategies, so that both the supplier and the demander can have a clear idea of production and sales. Specifically, it is to expand the scope of downstream application of polyester industrial yarn. For example, in the field of automotive textiles, it is necessary to develop wires for automotive safety belts and airbags. Zhengjunlin also reminded enterprises that due to the increased access threshold, it is necessary for upstream and downstream enterprises to invest more energy in technology, equipment investment and new product research and development

gejunmin believes that, due to the expansion of production capacity, the polyester industrial yarn industry, which is already in a low profit position, is even worse in the face of anti-dumping at the critical moment. It is not worth advocating to reduce the loss of benefits by stopping production and limiting production. We must choose a good development route, that is, to improve the operation level of the industry, turn the backward production capacity into high-quality production capacity, and realize product upgrading

in the post crisis era, French means "wonderful competition". Ge Junmin believes that the development of the industry should be promoted from many aspects. First, extend the industrial chain and improve the anti risk ability of enterprises. The second is to improve the application technology of polyester industrial yarn and expand the production capacity of high-end products. Third, avoid low-cost expansion and improve product value. Fourth, establish a standardized management pattern to keep pace with the world. Fifth, closely follow the national policies and develop differentiated products, which is also the need of market segmentation. Finally, we should standardize the development pattern and avoid blind investment and disrupting the market

note: the reprinted contents are indicated with the source. The reprint is for the purpose of transmitting more information, and does not mean to agree with their views or confirm the authenticity of their contents

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