Introduction: In 2020, all new production units of domestic bottle-grade PET companies have been put into operation. This year, a total of 1.45 million tons of new production capacity has been added. While the production capacity base has increased significantly, the market shares of each company have also undergone major changes. , Yisheng has become a new industry leader, and the market competition among enterprises has become increasingly fierce.
This year, although the COVID-19 epidemic has had a huge impact on the domestic bottle-grade PET market, the market price has reached a record low. , but the profits of bottle-grade PET companies have increased significantly. This year’s bottle flake company profits have nearly quadrupled compared with the same period last year. Stimulated by high profits, this year’s new bottle flake production capacity has been put into production as scheduled. As of mid-August, the new production capacity planned to be put into production this year The production capacity has been completed, with a total of 1.45 million tons of new production capacity added. The domestic bottle flake production capacity has reached 12.02 million tons. While the production capacity base has increased significantly, the market share of each company has also undergone major changes.
Table 1. Statistical table of new/expanded devices of bottle-grade PET manufacturers in 2020 (unit: 10,000 tons/year)
Data source: Jin Lianchuang
The largest company in production this year is Yisheng, with a total of 850,000 tons of new production. It added 350,000 tons of production capacity in Dalian. The device was put into operation around April 11 and produced high-quality products on the 13th. It has added a total of 500,000 tons of new production capacity in Hainan. Its first 250,000-ton new device began to heat up and feed materials on June 11, and began to produce high-quality products around the 29th; the other 250,000-ton new device was launched on August 3 It will be put into operation on the same day, and shipments will begin around the 10th. At present, Yisheng’s bottle flake production capacity in Hainan and Dalian totals 2.7 million tons, with a market share of 22.45%, making it the industry leader.
Another newly put into production is Wankai, which has added 600,000 tons of production capacity in Chongqing. The device began feeding materials on March 25 and began to produce high-quality products at the end of the month. It has opened up new market shares for the company in the southwest. Wankai currently has a total production capacity of bottle flakes of 1.8 million tons, with a market share of 14.96%, ranking third in the industry.
There are 5 bottle tablet companies in my country with a production capacity exceeding one million tons. In addition to Yisheng and Wankai, there are also Sanfangxiang, China Resources and Chenggao. However, Chenggao’s equipment is available all year round. The start-up is unstable and is currently in a state of complete suspension, which has little impact on the market. Sanfangxiang bottle flakes production capacity is 2 million tons, but its maximum production capacity can often exceed 10%, occupying a large position in the current market share. China Resources has a total production capacity of 1.6 million tons in Changzhou and Zhuhai, and has a large market influence in both the East and South China markets. Currently, CR5 accounts for 77.34% of bottle flakes companies.
There are still 10 remaining bottle flakes companies, with a total production capacity of 2.725 million tons, accounting for 22.66% of the total domestic bottle flakes production capacity. Currently, with the fierce competition among the top five companies, the market share left for smaller companies is only about 20%, and will become increasingly limited. For small and medium-sized manufacturers, the smaller the production capacity, the greater the competitive pressure in the market, and the risk of products being marginalized.
At present, the gap between leading enterprises and small and medium-sized enterprises will further widen. New production capacity is almost divided and digested by the giants. Leading enterprises continue to expand their market share, which not only consolidates their competitive position , and also strengthened the leading companies’ control over prices. Therefore, in the future bottle-grade PET industry, large-scale development will be an important bargaining chip for companies to compete for the market. </p
