Recently, a special symposium on chemical fiber industry in Zhejiang province organized by zhejiang Department of Economics and Information attracted attention. The meeting gathered the "four major families" of Chemical fiber in China: xiaoshan Rongsheng and Hengyi, Tongxiang Tongkun and Xinfengming; Polyester industrial silk leading enterprises: Ancient fiber path green fiber, Hailide New Materials, Yufu High-tech fiber shares; Recycling polyester leading enterprises: Haili Environmental Protection, Gaeli New Materials, Benma Chemical fiber; Nylon civil silk one of three: Huading nylon; Spandex leader: Huafeng Chemical. What exactly was the meeting about?

Half of the country, firmly leading

Textile and garment industry is one of the traditional advantageous industries in Zhejiang Province, as well as one of the four world-class advanced manufacturing clusters and ten iconic industrial chains zhejiang province is striving to build.

Zhejiang is also the largest province of chemical fiber in China and the world's largest chemical fiber production base, accounting for nearly half of China's chemical fiber output.

Zhejiang chemical fiber industry has formed a stable group of leading enterprises and a reasonable layout of small and strong specialized production enterprises. On April 11, 2022, China Chemical Fiber Industry Association released the 2021 chemical fiber industry output pre-ranking list based on the data from January to September of 2021 reported by enterprises. Zhejiang occupied the top three of the top 100 in the comprehensive list, accounting for 34 seats in total. The leading enterprises have global competitive advantages in production scale, industrial chain integration, innovation ability, green manufacturing, brand building and other aspects, and are worthy of the "Big MAC" in the industry. At the same time, focusing on the segmentation of the field of "specialized special new" enterprises are also constantly emerging.

In 2021, with the effective control of COVID-19 and steady progress in the resumption of work and production, textile production gradually recovered to pre-epidemic levels. In 2021, zhejiang textile and clothing industry enterprises above the scale to achieve industrial output value of 100.3 billion yuan, year-on-year growth of 17.5%, operating revenue of 1071.6 billion yuan, both first break trillion mark, the scale ranks first in the country; China's textile and garment exports reached US $82.2 billion, ranking first in the country. Among them, in 2021, zhejiang chemical fiber industry chemical fiber output 3.0961 million tons, operating revenue of 388.913 billion yuan, the overall performance of price increase, profit increase, stable inventory situation, to achieve the "14th five-year" good start. The revenue of chemical fiber accounts for 36.3% of textile and clothing industry in Zhejiang Province, with a high proportion and a wide range of applications. Steady growth of chemical fiber industry is of great importance to high-quality development.

Perfect upstream, strengthen downstream

Since the beginning of this year, due to the frequent occurrence of the epidemic, blocked logistics, geopolitics, rising costs and sluggish market demand, the utilization rate of the chemical fiber industry has declined, production growth has slowed down, and the trend of profit decline is obvious, and the operating pressure of enterprises has increased.

"At present, the severe market situation and a series of black swan events are forcing textile enterprises to adjust themselves comprehensively. Those with strong immunity will accelerate their growth, while those with strong immunity will be eliminated at an accelerated pace," said the entrepreneurs attending the meeting.

Due to the impact of the epidemic, local logistics in areas where the chemical fiber industry is concentrated are blocked, demand is depressed, raw materials rise in price, and the cost of superimposed chemical fiber remains high, which is difficult to smoothly transmit to the downstream. As a result, the utilization rate of chemical fiber industry decreases and economic benefits shrink significantly.

From the supply side, with the improvement of industrial integration and the growth of digestion and refining capacity, downstream supporting projects continue to greatly expand production, so raw materials and chemical fibers are still in the period of capacity expansion.

From the market side, China's textile and apparel market is expected to decrease, domestic sales may maintain a slow and stable growth, and external demand will gradually decline under the influence of "weak demand, high base, order outflow".

From the production side, in order to promote the balance between supply and demand in the industry and maintain the healthy development of the industrial chain, several chemical fiber major factories have formulated and implemented load reduction maintenance plans since early April, accounting for 20% of the total. Many polyester enterprises have also carried out load reduction maintenance measures to varying degrees.

For polyester leading enterprises, "improving the upstream, strengthening the downstream" has become their inevitable strategic choice. Small and medium-sized enterprises (smes) that invest in research and development of high value-added products in niche markets - namely, specialised start-ups - still have plenty of room to compete.

Policy intensive release, boost confidence

Recently, the state and local governments have introduced a series of economic stabilization and rescue measures. With the epidemic under effective control, the economy is gradually recovering, policies continue to be effective, and consumer confidence increases, there are great opportunities for the domestic market.

At the meeting, the person in charge of Zhejiang Provincial Department of Economy and Information Technology listened to the opinions and suggestions of the representatives of 12 participating enterprises. The person in charge of enterprises generally held a cautious and optimistic attitude towards the development of chemical fiber industry in the next stage, and expressed that they felt the care of the government and saw the hope of the good development of the industry.

Recently, Zhejiang province issued a package of policies and measures to stabilize the economy in Zhejiang Province, mainly including fiscal support, financial support, investment expansion, consumption promotion, stable foreign trade and foreign capital, food and energy security, to ensure the stability of the industrial chain and supply chain, to ensure the basic livelihood of 8 aspects, 38 policies and measures.

In addition, "Zhejiang Province Smooth circulation and stability of industrial action plan" (hereinafter referred to as the "action Plan") officially issued. The action plan includes 25 specific measures from 10 aspects to promote the smooth flow of industrial and supply chains and the stabilization and recovery of the industrial economy.

Sun Boyong, president of Zhejiang Textile Industry Association, suggested: First, to protect entrepreneurs and promote entrepreneurship; Second, to strengthen the top-level design and positioning of zhejiang textile and garment industry; Third, guidance and key support should be given to enterprises and products in line with the scope of the Guiding Opinions on high-quality Development of Chemical Fiber Industry.

Xu Xiaoyue, a member of the party group and deputy director of the Ministry of Economy and Information Technology, pointed out three points in her summary speech: First, we should bring together various forces. The chemical fiber industry in Zhejiang province has a large scale and strong influence. It is necessary to give full play to the leading role of chain leading enterprises, leading enterprises and representative enterprises, and unite with the government, associations, universities, think tanks and other forces to promote steady growth and high-quality development of the industry. Second, we need to boost confidence in development. The provincial government attaches great importance to the steady development of chemical fiber industry. The long-term positive development trend of the chemical fiber industry has not changed, and the current predicament of the chemical fiber industry should be viewed from the perspective of the long cycle, and it should be regarded as an important adjustment period of the long cycle of development, and the development of the industry should be planned from a higher level. Third, we will strengthen policy supply and business services. In accordance with the requirements of "preventing the epidemic, stabilizing the economy, and ensuring safe development," China has taken extraordinary measures to address development challenges, proactively guide expectations, and stimulate the vitality of enterprises, so as to ensure uninterrupted production, chain, capacity, and order. For the problems of enterprise feedback, Zhejiang Provincial Department of Economy and Information Technology will be classified and stratified to summarize and deal with, really help enterprises to tide over difficulties.

Hai'an County Qinfeng Chemical Fiber Co., Ltd. specializes in production and sales:polypropylene staple fiber, Polyester Staple Fiber, functional polypropylene short fiber, functional polyester staple fiber, hydrophilic polyester staple fiber,  polypropylene, PP staple fiber, polyester staple fiber.