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The impact of the SIGNING of RCEP agreement on polyester industry chain
Release time: 2020-11-27 10:47:16  Hits: 47

 

   On November 15, 2020, after eight years of negotiations, the Regional Comprehensive Economic Partnership (RCEP) was formally signed, marking the launch of the world's most populous free trade area with the largest economic and trade scale and the greatest development potential. The 15 MEMBER countries of the RCEP each account for about 30% of the global GDP, making it the largest FTA in the world. RCEP sign indicates that members have promised to reduce tariff barriers, open markets, reduce standards, issued against unilateralism and the strong signal protection, strong support for free trade and the multilateral trade system, helps to form the global economy is expected, boosting global economic recovery after the epidemic, for the export-oriented textile industry in our country is a big positive.

 

   China and Southeast Asia were originally the focus of the global textile and garment market. In recent years, influenced by artificial cost increase, terminal garment industry has gradually to southeast Asian countries, and the industry is widely publicized "Australian wool fabric + + China Thai garment) x = tax-free trade creation" concept, the current domestic textile industry has turned to high-end manufacturing development in the industry chain, reached the RCEP will clear division of labor, for countries to continue the current high efficiency low cost the acceleration of the industrial chain to form, the intermediate links of domestic chemical fiber, polyester yarn, and other products will be more competitive, long-term bullish related downstream products.

 

  But for upstream raw materials, import the higher percentage of PX or ethylene glycol will impact on the cost of imports, especially for PX, Japan and South Korea imports was relatively large, can account for around 50% of total imports, ethylene glycol aspects mainly imports has been in the Middle East and North America, northeast Asia, Japan and South Korea imports accounted for a relatively small, only accounts for 6% of all imports, and in recent years as the domestic ethylene glycol accelerating transformation period, the production of the ethylene glycol import dependency follow-up is expected to continue to decline. But on the whole, though in recent years, along with the integration of domestic refining plant start-up, PX and ethylene glycol import dependence is relatively lower, but as a decline in the cost of import trade zone may cause its increased, the rate of imports intensified competition for domestic supply of goods and imported goods, and for the current domestic high raw material inventory pattern will form further pressure on the market.

 

  RCEP the signing of the agreement in the long term impact on the overall polyester industry chain is positive to the good, for the development of the domestic textile industry a bottom-up pattern, the development on demand also can have good bottom-up conduction, especially under the background of domestic raw materials end centralized production, the follow-up resources integration is also the chance to ease domestic surplus expected, however, various rules has not landed in the short term, the market atmosphere is more of a confidence boost, textile industry in the cruel environment beginning in 2020 but is expected to be under the condition of positive well packaged curtain call, of course the follow-up still need to focus on RCEP agreement advance of the actual conditions.




 

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