Polyester bottle tablets: Rapid growth of production capacity, industry profits are worrying

Since the beginning of this year, the new production capacity of China's polyester industry has been concentrated in the polyester bottle chip sector. from January to April, China's polyester bottle chip increased production capacity by 2.73 million tons, of which polyester bottle chips increased by 1.7 million tons, accounting for 62% of the new polyester production capacity. Yisheng Dalian, a mainstream bottle chip manufacturer, is still actively expanding the production capacity of bottle chips, as well as the addition of new enterprises such as Anhui Haoyuan and Xinjiang Yipu. The number and scale of Chinese polyester bottle chips enterprises are constantly expanding. The growth rate of production capacity has increased significantly.

In recent years, the new production capacity of Chinese polyester bottle chip enterprises is relatively large, all between 60 and 1.5 million tons, so the production capacity of large bottle chip enterprises is gradually increasing. In 2023, with 1.5 million tons of Sanfang Lane, 600000 tons of Yisheng Hainan and 600000 tons of new units in Wankai Chongqing, 600000 tons of old plants in China Resources Jiangyin were restarted, and with the addition of 600000 tons of Hanjiang in Sichuan and 700000 tons of new enterprises in Fujian, the production capacity of polyester bottles in China increased by 4.6 million tons, with a production growth rate of 37 percent. From January to April 2024, polyester bottle chip enterprises are still actively expanding their production capacity. Anhui Haoyuan Chemical Industry added 600000 tons of polyester bottle chip production capacity in mid-January, and Yisheng Dalian put into production of 700000 tons of polyester bottle chips in mid-February and mid-March. Xinjiang Lanshan Tunhe added 100000 tons of production capacity in March, and Xinjiang Yipu put in 300000 tons of polyester bottle production capacity in April. This year, a total of 1.7 million tons of new production capacity, capacity growth rate has been as high as 10%.

Table 1. Statistical table of new production capacity of polyester bottle chips in China in 2024 (unit: 10,000 tons)

At present, the total production capacity of Yisheng polyester bottle chips has reached 4 million tons, accounting for 21% of the total production capacity of polyester bottle chips in China, ranking among the leaders in the polyester bottle chip industry. Yisheng Hainan will still have a set of production plans for 1.2 million tons of new production capacity this year. Sanfang Lane currently has a production capacity of 3.5 million tons of polyester bottle chips, accounting for 19% of the total production capacity of polyester bottle chips in China, ranking second in the production capacity of polyester bottle chips. Sanfang Lane plans to increase production capacity by 1.5 million tons this year, and its capacity share will continue to grow. The total production capacity of China Resources polyester bottle chips reached 3.3 million tons, accounting for 18% of the total production capacity of polyester bottle chips in China, ranking third in the production capacity of polyester bottle chips. The total production capacity of Wankai polyester bottle chips reached 3 million tons, accounting for 16% of the total production capacity of polyester bottle chips in China, ranking fourth in the production capacity of polyester bottle chips. At present, the top four production capacity of polyester bottle chips has accounted for 74% of the total production capacity, and the market share has been gradually occupied by leading manufacturers, and the pressure of market competition has gradually increased in the later stage.

Since last year, China's polyester bottle and chip industry has entered a new round of production peak, the main manufacturers are still actively expanding new capacity, Yisheng, Sanfang Lane, Yizheng chemical fiber and other enterprises are still expected to put into production. At that time, the production capacity of the main manufacturers will continue to expand, the distribution of enterprises will be more concentrated, and the market share of leading enterprises will continue to expand. This year, with the entry of new enterprises such as Xinjiang Yipu and Anhui Haoyuan, the number of polyester bottle and chip enterprises will continue to increase, and in the later stage, China's polyester bottle and chip industry may enter a new round of competition and reshuffle cycle.

Although polyester bottle chips have become a hot investment in polyester products, the profits of polyester bottle chips enterprises are the lowest among polyester products. Since the second half of last year, polyester bottle chip enterprises began to lose money. Among them, the average production profit this year is about-240 yuan / ton. At present, the production capacity of polyester bottle chips is facing greater excess pressure, so the profits of polyester bottle chips in China may remain low for a period of time during the redistribution of supply and demand in the industry.