Since the beginning of this year, due to the changes in the industry’s supply and demand relationship and the substantial promotion of raw materials, domestic spandex prices have risen sharply, with an increase of 86% since the beginning of this year, and an increase of more than 150% compared with the same period last year. The changes in the business cycle of the spandex industry are mainly due to the decline in production capacity on the supply side in the past few years. At the same time, the demand side has continued to grow rapidly due to the upgrade of epidemic prevention materials and clothing fabrics. At the same time, BDO has continued to promote the surge in PTEMG this year, which has also further pushed up the price of spandex. grow rapidly.
The three spandex giants are intensively put into production and advancing into the central and western regions
Benefiting from the raging market for spandex, the industry is also actively expanding production to seize dividends. The three major spandex giants have recently released new production capacity. Huafon Chemical Co., Ltd. issued an announcement on September 1, announcing that its holding subsidiary Huafon Chongqing Spandex Co., Ltd. The second phase of the 100,000 tons/year differentiated spandex project invested and constructed has entered the commissioning stage. Hyosung Spandex (Ningxia)’s annual output of 360,000 tons of spandex and its raw material supporting projects will be constructed in five phases in principle. The main body of the first phase of the project has been completed and equipment installation is in progress. It is expected to be put into production this year. Xinxiang Chemical Fiber stated that the first phase of the company’s annual production of 100,000 tons of high-quality ultra-fine denier spandex fiber project is currently progressing smoothly and is expected to be put into production in the fourth quarter of 2021.
At the same time, catalyzed by the high profitability of spandex, the spandex industry has begun a new round of production capacity expansion cycle. During the 14th Five-Year Plan period, spandex production capacity has nearly doubled, with Huafon Chemical and Hyosung Spandex’s production capacity expansion being the main ones. If the new production capacity in the future is fully When the capacity is reached, the annual production capacity of the spandex industry will reach about 2.05 million tons. The total production capacity of Huafon Chemical, Hyosung China, Xinxiang Chemical Fiber, Huahai Spandex, and Taihe New Materials will be among the top five in the industry. The annual production capacity will reach 52, 50, 23, 15, 120,000 tons, the industry CR3 will reach 60.97%, and the industry CR5 will reach 74.15%.
Most of the new domestic spandex production capacity in the next few years will be located in the central and western regions. The specific new production capacity in the western region is as follows:
See him build a tall building, see him collapse the building. Spandex has become the biggest decliner in the recent industry chain.
Since September, the trend of spandex has begun to weaken. As the overall downward trend of downstream weaving operations has become more obvious, demand has weakened, and supply has eased, the market price of spandex has indeed declined to varying degrees. Especially since November, with the collapse of crude oil prices, early speculation has gradually subsided, and spandex has become the largest decliner in the chemical fiber industry chain. Comparing the madness in the previous stage, it can be said that I saw him building a tall building and seeing it collapse!
Will the launch of new production capacity have a huge impact on the spandex market?
The editor believes that the increase in industry production capacity will inevitably have an impact on market prices. At present, the supply of spandex is easing, and some rigid needs can still be followed up. Fine-denier spandex will not be out of stock. However, in the short term, according to the price of previous years, spandex will still be at a high stage, based on the average price of 40D specifications. , last year hit new lows continuously. After hitting the lowest price in three years at 30,900 yuan/ton on August 12, it turned around and went up. By August 18, the average price of 40D reached a maximum of 83,750 yuan/ton, with a cumulative increase of 171%. Although there was a slight increase after It has fallen, but based on the current average price, it has increased by more than 150%.
In the process of upstream and downstream game, it remains to be seen whether the textile and clothing terminal consumption can be started. Regardless of the cost side, the current change in demand is the most critical factor affecting the trend of spandex. In the future, we will further pay attention to the follow-up of domestic and foreign orders in the downstream. If the supply of spandex is further abundant in the future, if the demand is difficult to boost or even declines, the market price of spandex will There is bound to be greater pressure.
</p
