It must be said that in November, when the entire textile environment was unremarkable, the prices of some commodities were still like a wild horse running wild! Especially for nylon and spandex, the rising rate has caused many cloth bosses to have “a headache”!
Recently, giants such as DSM, Toray, EMS, Asahi Kasei, Wanhua, and BASF have come to boost the market again!
Toray
The specific content of the price increase letter is as follows:
Due to the recent The market price of nylon raw materials continues to rise, and the current increase has exceeded the expected level, and the cost changes have exceeded the controllable range. The relevant prices of the following products will now be adjusted:
The price of PA66 will be increased by 3,000 yuan. /ton (including VAT).
This price adjustment will take effect from December 1, 2020.
Aymans
The specific content of the price increase letter:
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Due to the increase in raw material costs, the relevant prices of the following products will now be adjusted:
PA66 non-reinforced grade products will increase by 5,000 yuan/ton per ton;
PA66 enhanced grade products will increase by 3,500 yuan/ton;
This price adjustment will be on December 1, 2020 or Effective when permitted by contract.
Note: The quoted price does not include value-added tax, customs duties and other customs clearance fees.
In addition to the price increase notice issued by the manufacturer of nylon raw material PA66, recently the spandex giant Wanhua Chemical also announced the shutdown of its equipment!
Production suspension notice According to the announcement, the Ningbo factory’s discontinued device, with an annual output of 800,000 tons, will be suspended for maintenance on December 25, 2020, and the estimated maintenance time is 25 days.
It is reported that Wanhua Chemical’s pure MDI in bulk/barrel was listed at 28,000 yuan/ton in November, an increase of 8,200 yuan/ton from the previous month.
With news coming out one after another, are the prices of nylon and spandex going to rise again? Regardless of whether prices can rise in the future, let’s first review the trends of these two products this year.
In the first half of the year, when polyester filament was still falling, spandex and nylon were being robbed across the country for their use as “raw materials for mask belts”, and their prices also experienced a sharp decline. The wave rises. In a few days, nylon has increased from more than 10,000 to more than 20,000 per ton, and spandex has increased from more than 30,000 to more than 50,000, nearly breaking 60,000. It is priceless and has a market, and the market is hot like never before!
With the domestic epidemic under control, the demand for masks has also declined, and spandex and nylon It has also entered a relatively stable range. Entering the third quarter, the international oil price stood at US$40. The trading atmosphere for domestic and foreign textiles was hot. There was a certain degree of stocking for both domestic demand and foreign trade. The prices of raw materials such as nylon and spandex also showed strong performance, which once again pushed up their prices.
Especially for spandex products, manufacturers have issued price increase notices many times, and the manufacturers’ early backlog of inventory has gradually After clearance, the inventory has also dropped to historical lows. Some batch numbers are even tight, and the supply is tight!
To sum it up in one sentence: Nylon and spandex are “flying into the sky”!
As can be seen from the price comparison table, compared with polyester filament, the price performance is not Yes, nylon and spandex have experienced certain increases in the past two months. We also learned from raw material manufacturers that, in addition to price increases in the first half of the year due to demand, the price rise of these two “dark horses” in the second half of the year was mainly driven by the cost side.
Therefore, several chemical giants have recently announced price increases and equipment shutdowns, which may help their prices rise again.
Of course, if the increase in raw materials alone may drive up prices, but behind this price increase, downstream support is still needed. But in today’s weak general environment, can this wave of prices come?
“Spandex is probably not going to go up much, and downstream people don’t dare to buy it, so how can it go up!” said Mr. Shen, a four-way elastic fabric manufacturer.
As we enter November, especially after mid-term, the trading atmosphere in the entire domestic and foreign trade markets is not smooth. Many manufacturers are busy executing early orders, and new orders are relatively slow to be placed. In addition, the prices of nylon and spandex are currently rising frequently, which has exceeded the expectations of many manufacturers, and their purchasing intention for raw materials is not strong.
“The price of raw materials is too high now. If the woven cloth cannot be sold, the storage time of spandex yarn is too short, the risk is too great, and the market is not good this year, customers generally By lowering prices, our profits have shrunk again and again,” Mr. Shen said.
Another employee of a textile company that specializes in nylon spinning said that the factory’s operating capacity has been very low recently. “Now one-third of the machines in the factory are running. If there are no orders, the production capacity will be reduced. The boss is no longer willing to do so.” Happy to produce inventory, riskIt is too big, so the raw materials are also purchased according to the order and handled with caution.
Purchasing on demand and not hoarding goods easily has become the consensus of many textile bosses.
This year’s market situation is quite special. Although the global economy is currently recovering slowly, the impact of the epidemic on the market has not dissipated. Especially in countries with severe epidemics overseas, the blockade has not ended. The ports are stagnant and consumption has fallen sharply year-on-year. These are undoubtedly bad news for the textile industry.
The latest statistics on the COVID-19 epidemic released by Johns Hopkins University on the 30th show that the cumulative number of confirmed cases in the United States exceeds 13 million, with 266,813 deaths.
Affected by the epidemic, the foreign consumption season – “Black Friday” also performed poorly. Major physical stores have limited capacity, limiting customers’ on-site shopping time and the scale of their opening rush sales.
Data shows that during this year’s “Black Friday”, customer traffic in U.S. physical stores decreased by 52% , physical store sales subsequently decreased. Among “Black Friday” offline transactions, the sales of jewelry and footwear products dropped the most, with clothing categories falling by 50% and home furnishings categories falling by 39%.
There are various signs that there are still no obvious signs of recovery in terminal demand in December, and many textile people have pessimistic expectations for the market in December. As textile raw materials, nylon and spandex still need “dongfeng” to achieve high-price breakthroughs. However, the prices of their raw materials are still strong in the short term, and manufacturers can stock up appropriately to prevent prices from continuing to rise in the future and production costs to be ruthlessly driven up!
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