Viscose staple fibers (hereinafter referred to as sticky shorts) are considered to be one of the alternatives to cotton. Due to lack of supply, the price of cotton in the upper reaches has recently risen sharply, which has seriously eroded the profitability of the viscose industry. The cost is much lower than bamboo fiber, a viscous substitute, which may usher in a rapid growth. In fact, in order to get rid of the difficulties of profitability, there have been listed companies in the country that are preparing chemical fiber pulps related to bamboo fiber or dissolving pulp. Short-term price increase of viscose staple fiber At the meeting of the viscose staple fiber industry on March 18, participants generally agreed that, despite the current high raw material costs and increased operating pressure, considering the downstream business, stickiness should be kept stable. For the trend of the market outlook, the attitude of manufacturers is more determined. Affected by this, some manufacturers in the short-term viscous market quotation were slightly raised by RMB 100/t, and 1.5D (fineness) to RMB 28,600/t. Ding Jinqi, a researcher of the Cotton Textile Information Network, said that the industry’s price increase is actually very small, mainly because the downstream manufacturers are more cautious and demand is still not strong. In addition, the prices of raw materials such as cotton linters in the upper reaches remain high, which further weighs on the profitability of the industry. At present, the industry still hopes that the short-term price will remain stable in the short term. In the coming months, as stocks gradually digested and demand picked up, stickiness was still expected to increase by around 10% to 30,000 yuan/ton. At the same time, domestic raw material prices may ease slightly downwards. From the data provided by the First Textile Network, the price of sticky short this month is almost within the narrow range of 28,200 to 28,300 yuan. Since December last year, it has fallen by about 3%. In contrast, the cotton in the short-term upstream is currently quoted at 30,655 yuan per ton, which has risen by 16% over the same period. It is worth mentioning that sticky shorts hit a record high of RMB 30,800/tonne in November last year. "Although sticky short quotes are above 28,000 yuan, there are already some transaction prices between 26,000 and 27,000 yuan," said Gao Shuai, a researcher of the Cotton Textile Information Network. "In March, some manufacturers have started to replenish stocks, and stocks have gradually shifted. This will make it difficult to stick up the short-term price, which means that if the price of downstream products cannot be raised, and the prices of raw materials such as cotton and linters in the upper reaches are still high, there will be risks in the profits of stick-short companies." In 2010, the sticky rise of the madness even increased the annual report of some listed companies. Main listed viscose staple companies are Shandong Hailong (000677, closing price of 6.35 yuan), Jilin Chemical Fiber (000420, closing price of 8.99), Xinxiang Chemical Fiber (000949, closing price of 7.50 yuan) and Nanjing Chemical Fiber (600889, closing price of 10.12. Yuan) and so on. Among them, the performance forecast for Xinxiang Chemical Fiber Co., Ltd. stated that the prices of viscose fiber and spandex fiber at home and abroad have apparently increased year-on-year, and it is expected that net profit will increase significantly in 2010 compared with the same period of last year. Similarly, Nanjing Chemical Fiber also issued a large-scale preannouncement of the annual report. Bamboo fiber cost difference is nearly ten thousand yuan From the industrial chain, there are mainly three paths for producing viscose staple fibers. One is to refine cotton pulp through seed cotton and cotton linters to make it sticky; the other is to refine wood chips, wood pulp and wood pulp; and third, to extract bamboo fiber pulp by natural bamboo and bamboo pulp. Cotton pulp enterprises are mainly self-produced raw materials of viscose fiber listed companies. Enterprises will also incorporate imported wood pulp during pulp production. The listed companies mainly include Aoyang Science and Technology and Shandong Hailong; wood pulp companies require paper wood A refining process is added to the slurry for the production of chemical fiber pulp. As the profit of dissolving grade wood pulp is much higher than that of traditional wood pulp, there are companies in the country that plan to use chemical fiber pulp. The listed companies involved mainly include Chenming Paper Qingshan Paper. As for bamboo pulp and mortar enterprises, the major listed company is Jilin Chemical Fiber, which currently accounts for about 90% of the market share of bamboo fiber. A chemical researcher from a securities company in the North believes that although all three can do viscose fiber, they are very different. First of all, the upstream material of cotton pulp is cotton linters. Once the price of the latter is too fast, the related companies are likely to be in a state of low profit. In addition, the production capacity of domestic enterprises is also generally insufficient; secondly, wood pulp enterprises mainly import technology from abroad, because it is difficult to reach the same level abroad at the time of blending, and it is not yet mature to extract viscose through wood pulp. In terms of bamboo fiber, because Jilin Chemical Fiber holds the major market and has overcome the blending technology, the only drawback is that the existing capacity is not large. This means that how much of its performance can grow in the future depends critically on how much its fiber and bamboo pulp production capacity can expand. Cotton Textile Information Network researcher believes that the current price of bamboo is about 15,000 yuan, and the cost of bamboo pulp is 16700 to 18,000 yuan. The price of bamboo fiber in the market is close to stickiness, which is about 27,000 yuan, which means that the cost difference is close to 10,000 yuan. In addition, the cost of cotton pulp is about 23,000 yuan, and the difference between sticky and short-cut is about 4,000 yuan. It is worth noting that a few companies have begun replacing paper pulp with paper pulp instead. In this way, the median spread can be reduced to about 6,000 yuan. Jilin Chemical Fiber expands production of 10,000 tons of bamboo pulp Donghai Securities Research reported that Jilin Chemical Fiber now has 17,000 tons of viscose staple fiber, 48,000 tons of bamboo fiber staple fiber, and 90,000 tons of cotton pulp and 37,000 tons of bamboo pulp production capacity. At the same time, bamboo fiber production has accounted for more than 60% of all viscose production capacity. The company is planning to increase the production capacity of bamboo fiber and upstream bamboo pulp through private placement. After the completion of the project, bamboo fibre production capacity will reach 87,000 tons and bamboo pulp production capacity will reach 130,000 tons. By then, the proportion of bamboo fiber business will increase to more than 90%. This reporter learned that Jilin Chemical Fiber's two major investment projects include the expansion of the existing 20,000 tons of ordinary fiber production lines to 50,000 tons, and construction will begin after the private placement. The construction period of the project is 1 year and it is expected to be completed by mid-2012. At the same time, the company plans to build 95,000 tons of bamboo pulp in Yibin. The project construction period is 1.5 years and it is expected to be completed by the end of 2012. The reporter called Jilin Chemical Fiber. The company’s chief economist Tang Jiawei introduced that the company’s existing bamboo pulp production capacity is in Sichuan Tianzhu and Hunan Tuopu. This year the company will also expand bamboo pulp production capacity, among which Hunan Tuopu will expand to 15,000 tons, Sichuan Tianzhu will expand 3000 to 4000 tons. A chemical researcher, who declined to be named, believes that due to the difficulty in raising price of viscose staple fiber in the near future, Jilin Chemical Fiber's bamboo fiber is expected to drive growth with cost advantage and capacity expansion. Looking at the current situation, 2011 results are likely to turn losses into losses. This year, the expected expansion of bamboo pulp production capacity of approximately 10,000 tons has been basically reflected in the stock price. The future performance of the company depends critically on the fund-raising projects put into operation in 2012. It is expected that the performance will increase by 60% in 2012. In addition, the Sichuan Yibin new construction project is currently awaiting land certificates and it is expected that construction will begin after May this year. Donghai Securities believes that after the company's production capacity is put into production as expected, it will significantly increase profits. It is estimated that the EPS (per share) for 2011 to 2012 will be 0.31 yuan and 0.55 yuan, corresponding to the PE values ​​of 26.5 and 14.9 times in 2011 and 2012 respectively. According to the average PE valuation of listed companies in the chemical fiber industry, it is given a six-month target price of 9.92 yuan. Bathtub Shower Faucet,2 Handle Shower Faucet,Two Handle Shower Faucet,Freestanding Tub Faucet Kaiping City Yibiao Sanitary Ware Co., Ltd. , https://www.aolifaucet.com
According to statistics, in 2010, viscose and domestic 328 cotton stocks rose by 34% and 86% respectively.