December 23, 2024

Limit production and reduce the burden on the domestic preferred BOPET companies

Drying equipment

Contradictions in the oversupply of the market and uncontrolled low-price competition in the industry have made it difficult for this year's biaxially stretched polyester (BOPET) film market to be more brilliant. Many manufacturing companies have had a hard time. During the 2012 Functional Film Industry Market and Technology Development Seminar held on April 16-17, many experts and market participants suffered heavy losses because the processing fee will be maintained at 1800-2,000 yuan (t price, the same below). It will be an extremely difficult year for the BOPET film market. There are even many manufacturers who will take stock of the loss in order to absorb the inventory.

The explosive growth in production capacity was the direct driver of the rapid subversion of the BOPET film market. Since the beginning of 2011, the domestic market has surged by about 40 new production lines and added nearly one million tons of new production capacity. It is expected to increase production capacity by 441,000 tons this year, with a growth rate of 37.2%, which has greatly exceeded the average production rate of 6.5% of the world's forecast by relevant agencies. The growth rate also clearly exceeds the average annual growth rate of 26.8% in China from 2002 to 2010.

The growth of market demand is far behind the jaw-dropping capacity growth rate. Even with the 20% annual growth forecast, there will still be 20% to 30% excess domestic capacity. At the same time, new production capacity is mostly concentrated on ordinary packaging applications. The homogeneity of products and irrational investment will inevitably lead to disorderly industry competition. Rapidly released production capacity will have a huge impact on the oversupply market.

Due to lack of production capacity, production companies have a long delivery time. In 2010, BOPET film prices soared, creating a myth of the packaging market. However, with the release of new production capacity in the fourth quarter of 2010, the situation of insufficient supply in the market has been effectively alleviated in 2011, and the era of profiteering of BOPET film has also ended. The relationship between market supply and demand has turned sharply, and the price of membranes has embarked on a long road of decline from 26,000 yuan, all the way down to 16,500 yuan.

A large number of new production capacity was released in the third quarter of last year, further worsening the contradiction between supply and demand in the market. In addition, the continuous expansion of the sovereign credit crisis in Europe and the United States, the commodity market continued to slump, downstream demand has not improved, BOPET film plant inventory pressure gradually increased, the factory price continued to hover around the cost, in order to ease the financial pressure, low-cost shipping ratio All of them, the golden period of the BOPET film era came to an abrupt end.

At present, the regulation and control of real estate in the country has not diminished, and individual housing enterprises have already experienced the risk of capital loss. Although the central bank recognizes the legitimacy of private lending, the financing environment for SMEs has improved slightly, but raw material and labor costs have risen sharply, fluctuations in the exchange rate of the RMB still plague SMEs. The operating rate of low-end customers in the BOPET film terminal market has been maintained at 30% to 50% for a long period of time. The shortage of liquidity has long constrained the production and operation of enterprises, and it is difficult to recover short-term market demand.

At the same time, the export of BOPET film products is restricted by anti-dumping measures in Europe and the United States and other regions. The new anti-dumping tax rate ruled by the United States will make it more difficult for Chinese products to be sold to the North American market. With the deepening of the debt crisis in Europe, the unemployment rate in the United States remains high, and trade sanctions against China will exist for a long time. India's domestic restrictions on packaging measures and external low price competition also affected the export of our products. The export situation of BOPET film is in crisis.

It is reported that according to the current situation, the domestic BOPET film market is difficult to achieve a balance between production and sales within 3 years. However, the operating rate of the downstream packaging color printing aluminizing industry declined, and the demand continued to slump. Even if the BOPET film factory uses promotional measures, the role is getting weaker and weaker. As sales continue to slump, panic has spread in production companies, causing massive sell-offs in the market at no cost.

In response, representatives of participating enterprises frankly stated that restricting production and reducing the burden may be the most effective method at present. Lowering production can reduce inventory and effectively improve supply and demand. The profits of the industry have been almost squeezed to the limit, and the space for BOPET film prices to continue to fall in the future has not been large, and the limited production may become an important step in the gradual restoration of market confidence. However, experts pointed out that reducing the burden is a double-edged sword, which may further drag down raw material prices, dampen market sentiment, and push the BOPET film market to the bottom. Therefore, each enterprise must decide according to its own specific circumstances, and it is not possible to carry out the reduction of production and production in the end.

Welding Bar

Tungsten carbide welding bars are commonly used in the oil and gas industry for various applications. These bars are made from a combination of tungsten and carbon, which results in a very hard and wear-resistant material. Here are some specific uses of tungsten carbide welding bars in the oil and gas industry:

1. Hardfacing: Tungsten carbide welding bars are used for hardfacing applications, where a wear-resistant layer is applied to drilling tools, valves, pumps, and other equipment exposed to abrasive environments. This helps to extend the lifespan of the components and reduce maintenance costs.

2. Drill bits: Tungsten carbide welding bars are used to manufacture drill bits for oil and gas exploration. The hard and durable nature of tungsten carbide makes it ideal for drilling through tough rock formations.

3. Wear plates and liners: Tungsten carbide welding bars are used to create wear plates and liners for equipment used in oil and gas production. These plates and liners protect the underlying metal surfaces from abrasion and corrosion, ensuring the longevity of the equipment.

4. Valve seats and seals: Tungsten carbide welding bars are used to manufacture valve seats and seals for oil and gas valves. The high hardness and wear resistance of tungsten carbide ensure reliable sealing and prevent leakage in critical applications.

5. Downhole tools: Tungsten carbide welding bars are used in the manufacturing of downhole tools such as stabilizers, reamers, and drill collars. These tools are subjected to high pressures, temperatures, and abrasive conditions, and tungsten carbide helps to enhance their durability and performance.

Overall, tungsten carbide welding bars play a crucial role in the oil and gas industry by providing wear resistance, hardness, and durability to various components and equipment.

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