Although the recent textile market is in the off-season, the market is not calm, especially various textile raw materials that have taken turns to increase prices. Compared with common raw materials with a wide range of uses such as polyester filament and nylon, the price increase of raw materials with relatively limited uses such as spandex is somewhat surprising, and the price increase is extremely large. As of today, the mainstream reference quotation of 40D spandex on the market is 72,000-75,000 yuan/ton, which is 2,000-3,000 yuan/ton higher than a week ago. 40D is a relatively common elastic material. Most elastic fabrics on the market use 40D spandex. Its price changes can truly reflect the market changes of spandex.
The price of spandex is so hot, in addition to the sharp increase in international oil prices In addition to the rising cost of spandex, an important reason is that downstream terminal demand is gradually increasing. The operating rate of major spandex manufacturers exceeds 90%, while inventory levels are at historically low levels. But what is surprising is that the rising prices of spandex are rarely reflected in downstream elastic fabrics. It seems that changes in spandex prices have a limited impact on fabrics.
It is difficult to increase the price of elastic fabrics in the short term
” Normally, if the price of raw materials changes by 500 yuan/ton, our fabric prices will have to be adjusted accordingly. However, the price of spandex has increased so many times this year that we did not raise it slightly until this week. Some fabrics increased by 0.1 yuan/meter, and some increased by 0.1 yuan/meter. It’s only a few cents. And once the price of spandex drops later, we will immediately lower the price.” said a person in charge of a weaving company.
Although they have recently raised fabric prices, it all reveals that elastic fabrics are under great pressure to increase prices. Isn’t it said that the demand for good elastic fabrics is strong? Why is it so difficult to increase the price of fabrics? In fact, there are indeed many orders for elastic fabrics in the textile market. According to the person in charge of the company, they produce many types of fabric products, but only a few elastic fabrics are actually selling well. Basically, the entire company’s hope is on elastic fabrics. Therefore, when it can maintain basic profits, it does not dare to increase prices rashly, fearing that customers and orders will be lost due to price increases.
Customer liquidity for small orders in the market is also Strong, often shop around and choose the weaving factory with the lowest price to get goods. Customers with large orders often choose powerful weavers due to their large quantities. It is difficult for small factories to get a share of the pie. Moreover, these large customers have negotiated prices and signed contracts in advance, and the price of fabrics will basically increase later. Hopeless.
In other words, the impact of spandex price increases on current orders in the short term is indeed limited, but as the off-season ends and the peak season arrives, the impact on spandex prices will inevitably gradually If you work hard, will the price of four-sided bombs surge?
Long-term elastic fabric price increases are inevitable
Spandex is in The price increase momentum this year is so strong mainly because the growth rate of spandex production capacity is lower than the growth rate of terminal demand. Spandex production capacity increased from 165,000 tons in 2004 to 786,300 tons in 2018; by 2019, China’s spandex production capacity reached 850,000 tons, a year-on-year increase of 8.1%; last year, China’s spandex production in 2020 was 872,000 tons, an increase of only 22,000 tons , a year-on-year increase of 2.59%.
In recent years, my country’s apparent consumption of spandex It increased year by year, reaching 681,000 tons in 2019. In 2020, China’s apparent demand for spandex increased to 782,900 tons, a year-on-year increase of 14.97%. In addition, spandex exports have also affected domestic spandex supply. According to statistics, China’s spandex exports in 2019 were 74,000 tons, a year-on-year increase of 28.2%; in 2020, China’s spandex exports were 78,500 tons, a year-on-year increase of 6.08%.
The 2.59% growth rate on the supply side is insufficient compared with the 14.97% growth rate on the demand side and 6.08% growth rate on the export side. A situation of “supply exceeds demand” is forming, and spandex price increases are inevitable. According to market analysis, spandex prices will hit a new high in the third quarter. However, the higher profits of spandex naturally attract more investment in production capacity.
Huafeng Chemical plans to expand by 300,000 tons/ The annual differentiated spandex project has an estimated construction period of 72 months and will be implemented in three phases. The first phase: 50,000 tons/year; the second phase: 150,000 tons/year; the third phase: 100,000 tons/year. The construction period of each phase is expected to be 24 months.
Xinxiang Chemical Fiber plans to implement the second phase of the high-quality ultra-fine denier spandex fiber project with an annual output of 100,000 tons. The project has an annual output of ultra-fine denier spandex fiber of 30,000 tons. Construction is scheduled to start in the second quarter of 2021, with a construction period of 18 months.
Hyosung Spandex plans to build a project with an annual output of 360,000 tons of spandex and raw materials, which will be planned in one step and implemented in phases.Five phases of construction, with a construction period of five years. Since the first phase of the project started construction in March 2021, it is expected to be completed and put into operation by the end of November.
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Although there are many Production capacity is already under construction, but the latest production will have to wait until the end of November this year. The current supply shortage of spandex is still unavoidable. Especially in the peak season in the second half of the year, spandex prices will inevitably rise, and fabrics will follow suit. Even if new production capacity is put into operation by the end of the year, it may be difficult to meet the new terminal demand.
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