“Take our company’s 20D fine-denier spandex as an example. The lowest price in 2021 is about more than 30,000 yuan/ton, and the highest price in June and July reached 100,000 yuan/ton to 110,000 yuan/ton. Most of last year The price is also 80,000 yuan/ton to 90,000 yuan/ton.” Recalling this hot market, the person in charge of a domestic spandex company still seems very excited.
The proportion of clothing applications with high spandex content such as yoga wear and sportswear has increased, driving spandex consumption.
Excitement should be a mood shared by my country’s spandex companies last year.
Net profits have increased significantly year-on-year, and some have even increased by more than 200%… The 2021 performance forecasts recently disclosed by several listed spandex companies also show that they do have enough reasons to be excited.
“From product price increases to corporate operating profits, the overall performance of the spandex industry in 2021 is very eye-catching. In layman’s terms, everyone made a lot of money last year.” The person in charge of the sales department of another spandex company expressed such emotion.
What is the supporting force behind the booming spandex market in my country in 2021? What are the new trends of leading companies at this stage? After the Spring Festival in 2022, the spandex market has declined. What will the market outlook be like? Recently, reporters conducted interviews with relevant persons in charge of several spandex companies.
Product supply exceeds demand, market is hot
Prices rise sharply and last for a long time
Relevant statistics show that throughout 2021, the average annual price of 40D spandex is 66,977 yuan/ton, a year-on-year increase of 117%; the price difference of 40D spandex is 23,007 yuan/ton, a year-on-year increase of 5,110 yuan/ton.
“In fact, the spandex market has been booming since the outbreak of the domestic epidemic in 2020, and this state has basically continued until the end of 2021. At the beginning of 2021, when the price was low, the spandex price was about more than 30,000 yuan/ton, but soon , the price keeps rising, it can be said that it is ‘one price a day’; the highest price point occurred in August, when the price of 40D spandex was as high as 83,750 yuan/ton, an increase of more than 170%, and the price increase reached 150% at many times throughout the year. About %. Especially in the second and third quarters, the market was the hottest. At that time, all manufacturers were basically out of stock, and products were in short supply. It was only in the fourth quarter that the market fell back.” The person in charge of the sales department of the above-mentioned spandex company told reporters.
Statistics from China Fiber Network show that the highest monthly average price of spandex in 2021 will be in August. In that month, the monthly average price of 20D spandex was as high as 103,500 yuan/ton, the monthly average price of 30D spandex was as high as 91,250 yuan/ton, and the monthly average price of 40D spandex was as high as 79,700 yuan/ton. Among them, the average weekly price of 40D spandex reached 80,000 yuan/ton in the second and third weeks of August.
“Try to ensure that customers do not have downtime, but we cannot ship more to a single customer because the company’s total production capacity is fixed, so the overall delivery rhythm must be controlled.” When product supply was very tight in the second and third quarters of last year, Hua Hua said Feng Chemical Co., Ltd. has adopted such a sales strategy.
Huafeng Chemical is one of the leading companies in my country’s spandex industry. Its current annual spandex production capacity is approximately more than 200,000 tons, and its production and sales will be balanced in 2021.
“For the whole of last year, especially in the second and third quarters, the spandex market was generally out of stock, and downstream customers often couldn’t get the goods. The output of each company is certain, and as soon as the factory produces it, the product will be sent out. Under normal circumstances, the industry’s inventory is basically 20 to 30 days, but in the second and third quarters of last year, the industry’s inventory was only 6 to 7 days. Otherwise, prices would not have risen so fast.” A person from the marketing department of Huafeng Chemical the person in charge said.
According to reports, Huafeng Chemical has direct sales offices in major weaving industry clusters, and the company is basically clear about how many goods each cooperative customer needs every day. Each direct-operated office has a warehouse, which can basically ensure that customers can pick up the goods in time. “But even so, when products were in short supply last year, customers kept calling our salesmen to urge shipments,” the person in charge said.
Recalling the bustling scene during the peak season, the person in charge of a domestic spandex company said with emotion: “When the market is out of stock, our sales staff have to receive a dozen or even dozens of calls every day, either from customers or They were called by dealers, and they were always urging shipments. When there was really no goods to be shipped, the salespersons simply did not dare to answer the phone. Moreover, many people came directly to the company headquarters to urge shipments. On average, last year almost The company receives about 10 customers every week, and they either rush for goods or negotiate prices.”
In this spandex company, under normal market conditions, from 8:30 to 17:00 every day, loading workers usually only need one day shift to load the departing goods. Even if the shipment volume is slightly larger that day, at most Finished at 18:00. However, in the second quarter of last year, the company’s daily shipment volume almost doubled. In addition to working the normal day shift, loading workers had to be busy until midnight, or even until one or two o’clock the next day to finish loading. There was a long row of trucks hauling goods from the company, and the number was double that of usual.
Even so, the total output is fixed. In response to the situation where supply exceeded demand at that time, the company adopted a certain delivery strategy.
The person in charge of the company said: “Based on the grade of the products purchased by the customers, the actual price they can accept, the long-term development prospects, and the payment collection, we divided the customers into three categories: A, B, and C. At that time, priority was given to/p>
The market outlook is expected to stabilize
Just like the rising tide and the ebbing tide, ups and downs are the normal state of the market. After the hot market lasted for a long time, the spandex market began to decline to a certain extent starting from the fourth quarter of 2021; in November, affected by factors such as the phased decline in international crude oil prices and weakening downstream demand, spandex prices began to fall.
Statistics from China Fiber Network show that in November 2021, the average monthly price of 20D spandex was 100,900 yuan/ton, the average monthly price of 30D spandex was 88,600 yuan/ton, and the average monthly price of 40D spandex was 76,300 yuan/ton. ; In December, the monthly average price of 20D spandex was 89,500 yuan/ton, the monthly average price of 30D spandex was 79,200 yuan/ton, and the monthly average price of 40D spandex was 66,500 yuan/ton; in mid-to-late December, Xiao Shao The spandex market in Haining, Guangdong, and Guangdong regions all showed weak performance, with the operating rate falling to 40% to 7.50%.
After the Spring Festival in 2022, the spandex market continues to decline. In January this year, the monthly average price of 20D spandex was 76,500 yuan/ton; the monthly average price of 30D spandex was 67,300 yuan/ton; the monthly average price of 40D spandex was 57,300 yuan/ton. It can be found that in January this year, the monthly average price of the representative 40D spandex dropped by 22,400 yuan/ton from the high of 79,700 yuan/ton in August last year.
At the end of February, the market quotation of 20D spandex dropped to 71,000 yuan/ton to 78,000 yuan/ton; the market quotation of 40D spandex dropped to 51,000 yuan/ton to 58,000 yuan/ton; the price was basically the same as last year. In early March, the supply of goods in the spandex market was stable, and the industry operating rate was about 79%.
“As the Spring Festival approaches, the downstream textile market is relatively light, and the demand for upstream raw materials is reduced. Weaving companies are cautious in stocking up. The reduction in demand is an important reason for the price reduction of spandex. During this period after the Spring Festival, the market is still in the initial stage, and the market is not so hot. Coupled with the recurrence of epidemics in many places, workers’ return to work has been affected to a certain extent.” said the person in charge of Huafeng Chemical.
So, how do you view the recent trends in the spandex market? Will the hot market that has lasted for nearly two years come to an end? Will the market stabilize next?
“The market currently has strong expectations for the commissioning of new production capacity. Before the end of this year, many companies will have new production capacity put into production. As the new production capacity is gradually put into operation, last year’s shortage of products will no longer occur, and supply will be alleviated. Supply will become relatively loose. As the supply and demand relationship changes, the spandex market is expected to stabilize throughout this year, or return to normal, and the hot market like last year is not expected to reappear.” An industry insider explain.
The reporter learned that since the end of last year, my country’s spandex market has begun to enter a stage of rapid expansion. Before the end of this year, the production capacity involved in new projects of many companies is expected to be put into production. At the same time, the new projects invested and constructed by South Korea’s Hyosung Group in Ningxia, my country, also have new production capacity put on the market.
According to incomplete statistics, in 2022, the new production capacity of the domestic spandex market is expected to be approximately 200,000 tons. During the “14th Five-Year Plan” period, my country’s spandex production capacity is expected to double, and production capacity will further converge towards “head” companies.
“Judging from our market research, it is expected that the spandex market will be relatively stable this year and the market will return to normal. According to the company’s ’14th Five-Year Plan’ development plan, we will advance our production expansion plan in an orderly manner. Currently, our new projects It is proceeding step by step. Overall, the competition in the spandex market will be more intense this year, so the full-year market situation depends on the actual situation.” said the above-mentioned person in charge of Huafeng Chemical.
“The market this year will not be as popular as last year. It is expected to be relatively stable and may be similar to the market situation during the epidemic.” The person in charge of another company said.
On the one hand, competition is becoming increasingly fierce, and on the other hand, the market is gradually returning to stability. How should spandex companies respond? In this regard, Chen Xinwei pointed out: “First, enterprises must remain rational and coordinate the rhythm between production capacity and comply with market demand; second, they must increase efforts in the development of new products, increase differentiated varieties, open up new application areas, and avoid homogeneity. The third is to further improve the level of intelligent manufacturing, improve production technology, enhance corporate innovation capabilities, and promote technological progress in the industry; the fourth is to improve the level of green manufacturing, reduce energy consumption, and promote the sustainability of the industry develop.”
“Last year’s situation was so special that it can only become a good memory now. At this stage, everyone still has to do their own thing in a down-to-earth manner in accordance with the company’s established rhythm and development strategy.” During the interview, several company leaders said Expressed this way.
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