Leading polyester enterprises embrace growing performance in Q1 2021

As of the evening of April 29, leading companies on polyester market including Hengli Petrochemical, Rongsheng Petrochemical, Hengyi Petrochemical, Tongkun, Xinfengming and Eastern Shenghong have released quarterly report for the Q1 2021 . The key operating data of the six companies are as follows:

Reasons for performance changes:

In the first quarter of 2021, with the normalization of epidemic prevention and control and the gradual recovery of economies outside China, demand for downstream textile and apparel industry has picked up significantly. In terms of exports, textile and apparel exports of China were US$65.1 billion in the first quarter of 2021, an increase of 43.8%, of which clothing exports were US$33.29 billion, an increase of 47.7%, surpassing the growth rate of textile exports; in terms of domestic sales, the retail value of apparels, shoes, hats, knitwear and textiles in above-designated enterprises was 340.13 billion yuan in Q1 2021, a year-on-year increase of 54.2%, basically returning to the level of the same period in 2019.

In this context, the price of polyester products represented by polyester filament yarns increased substantially, and the profit margin has been significantly expanded, which has led to a substantial increase in corporate performance. In addition, with gradual recovery of the cracking spread, the profitability of private refineries may usher in a rebound, and the benefits will continue to improve.