In recent years, competition among polyester chemical fiber companies has become increasingly fierce. As production costs and prices are relatively transparent, (for example, the price difference between conventional products of a single 200,000-ton polyester production line from different companies is 200 yuan/ton to 300 yuan/ton). tons), under this background, the geographical advantages and regionality of chemical fiber products become more obvious. In a sense, transportation costs have become an important aspect of competition among polyester companies.
For chemical fiber companies, it’s time to pay for freight!
On September 21, new regulations to control overheating were introduced, and logistics freight prices increased accordingly. The pressure on chemical fiber companies in terms of transportation costs has greatly increased. It can be said that freight is crucial for polyester companies to occupy the market and make profits. Whoever has an advantage in transportation costs may be more competitive in the market.
Next, the author takes Fujian and Jiangsu and Zhejiang regions as examples to discuss which of the two chemical fiber industry clusters in the north and south has more advantages in terms of transportation costs.
The first thing to affirm is that after more than ten years of development, polyester companies in Fujian and Jiangsu and Zhejiang have grown rapidly. A number of national “leading” companies have gathered one after another. Their competitive advantages are outstanding, and they have formed a strong presence in the national and even global polyester and polyester markets. Strong advantage. Such as Hengli, Shenghong, Rongsheng, Tongkun, Hengyi in Jiangsu and Zhejiang, and Baihong and Jinlun High Fiber in Fujian.
However, Fujian’s polyester and polyester industry is relatively “secure”. Unlike Jiangsu and Zhejiang, its products can be sold across the country and even around the world, and its regional characteristics are relatively prominent. In addition, the sales prices and sales methods of enterprises in the two places are also different:
As can be seen from the above table, the product coverage of Fujian polyester enterprises is mostly concentrated in this province or neighboring provinces. The “digestion” of products mainly relies on the developed fabric weaving and footwear and clothing, warp knitting and circular knitting industries in Fujian and Guangdong to meet the endogenous nature of the region. Demand dominates. Moreover, the local market generally provides shipping and delivery prices. If the products of polyester and polyester companies in Jiangsu and Zhejiang are transported to Fujian, the freight will be approximately 300 yuan/ton.
Therefore, at the same selling price, local enterprises in Fujian have a profit margin of 200 yuan/ton to 300 yuan/ton. If the annual output of a local polyester company in Fujian is 1 million tons, then the profit margin in this area is 200 million to 300 million yuan.
Regional sales bring considerable profit margins!
Therefore, one of the most direct benefits of regional sales is to save freight. In the current fierce market competition, the profit saved from freight is also a considerable income for polyester companies. Especially after the introduction of new regulations to control overheating, logistics companies in various places have seen price increases over long distances: (The picture below shows the latest freight rates from Shengze to various places)
Taking the freight rate from Shengze to Fujian Shishi as an example, the freight rate has increased by 60 yuan per ton. Compared with the long-distance sales of Zhejiang polyester companies, local sales of Fujian polyester companies have a profit margin of 260-360 yuan/ton.
In recent years, the price of polyester and polyester products has fluctuated greatly due to the fluctuation of international oil prices, and textile companies themselves have also seen rapid changes in orders, so they will not do too much stockpiling in terms of raw material operations. Therefore, even if the products of local chemical fiber raw material factories are priced 100 yuan/ton to 200 yuan/ton, local downstream weaving companies will be willing to buy local polyester products, because they can be bought and used at any time, occupying less funds, and the products Flexible transformation.
In this way, with the current increase in transportation costs, the regional sales advantages of polyester companies have become even more prominent.
Previously, a person from a well-known polyester company in Jiangsu who focuses on business expansion in Fujian pointed out that the products of chemical fiber companies in Jiangsu and Zhejiang are “all-in-one” across the country, such as Shengze, Changshu, Zhejiang Keqiao, Fujian, Guangdong and other markets. Enterprises in Fujian are only strong in the regional market. We sell our products to their doorsteps, but it is difficult for them to sell their products to Jiangsu and Zhejiang. At that time, he was somewhat elated when he said this. I wonder if he is still confident that some customers will “seek the farther away” now that shipping costs have increased so much.
In short, in the “big picture” of the domestic polyester and polyester industry, each industrial cluster has its relative advantages and disadvantages. The market is constantly changing, and we cannot say that the current flaws and shortcomings will always exist. For example, when transportation costs rise, the “relative closed nature” of Fujian polyester companies has turned into its own advantages, and regional sales have It brings considerable profit margins.
Therefore, as long as we are in the cruel market competition, I believe that every company has its sweetness and troubles. However, whether it is sweet or painful, we must be clear-headed when facing advantages, catch up when facing gaps, and make breakthroughs. This is the right way for enterprises to stay in the market for a long time.
