Since this year, the price of spandex has continued to rise.
On July 19, Xiamen Lilong Spandex Co., Ltd. quoted spandex 40D at 84,000 yuan/ton , Xinxiang Chemical Fiber’s quotation for spandex 40D is 79,000 yuan/ton, and the quotation is valid for 3 days.
The rise in raw materials and the rebound in demand are the main reasons
The growth of spandex fabrics The advantages are good elasticity, can be stretched 5-8 times, acid and alkali resistance, and not easy to age, so it has been widely used in clothing fabrics. Spandex cannot be woven alone. It is usually woven with other raw materials, and the proportion is generally between 3-10%. Therefore, spandex is known as the “monosodium glutamate” of textiles.
It is understood that the increase in spandex from January to May is related to the increase in the price of its raw materials. PTMEG is the main raw material of spandex, accounting for 80% of spandex raw materials. Affected by the control of overseas epidemics and the recovery of demand, oil prices rose in the first half of this year. The raw materials for the production of PTMEG are refined from oil. PTMEG has increased by 124% this year.
In addition to the rise in raw materials, the rebound in demand is an important reason for the rise in spandex prices. On the demand side, the export volume of spandex from January to May increased by about 58% compared with the same period last year. In addition, after the epidemic, people pay more attention to sports and health, and the downstream demand for comfortable fabrics, especially yoga clothes and sportswear, has increased.
Benefiting from this, the proportion of spandex applications has increased. In ordinary sportswear, spandex accounts for 10% to 20%, and some even reach 30%. For example, Anta’s sun protection jacket has spandex accounting for 28%. In addition, downstream companies have recently been stocking up on autumn fabrics.
“The demand is compounded by tight supply, and the price of spandex is rising steadily.” Bao Mengmei pointed out that the high price of spandex is also related to the fact that production capacity has not yet been fully opened. At present, the spandex industry has about 80-90% operating capacity, and the load differentiation among manufacturers is still obvious.
The performance of listed chemical fiber companies is like a “helicopter”
Spandex prices rose, and a number of listed chemical fiber companies reported “good news” on their semi-annual results.
On July 12, Xinxiang Chemical Fiber released a performance forecast for its semi-annual report. The company expects its performance to increase significantly from January to June 2021, with net profits attributable to shareholders of listed companies ranging from 710 million to 710 million. 760 million yuan, and net profit increased by 2394.14% year-on-year to 2569.79%. After decomposition, the net profit is 311 million yuan in the first quarter of this year, which increased to 400 million yuan to 450 million yuan in the second quarter.
Xinxiang Chemical Fiber’s performance forecast stated that due to the continued growth in basic demand in the spandex industry, the sales price of the company’s main product spandex fiber has increased significantly compared with the same period last year, sales have increased significantly, and the gross profit margin of the spandex business has increased significantly. The company’s semi-annual performance increased significantly compared with the same period last year.
According to CITIC Construction’s research report, from the perspective of Xinxiang Chemical Fiber’s spandex product structure: the company’s spandex products mainly include 20D, 30D, and 40D, of which spandex 20D accounts for more than 30%. The largest spandex 20D manufacturer in China, spandex 40D accounts for about 40%. The price difference increase of spandex 20D is significantly higher than that of 40D. As the largest spandex 20D manufacturer in China, the company’s benefit is higher than the industry average.
In terms of production costs, the 100,000 tons of new production capacity added by Xinxiang Chemical Fiber after 2014 will all adopt the industry-leading fourth-generation spandex production technology developed by Zhengzhou COSCO. . The comprehensive energy consumption of this technology is about 34% lower than that of the third-generation technology, and the production cost is 2,000-3,000 yuan/ton lower than that of domestic small production capacity.
Bao Mengmei believes that the price of spandex may reach an inflection point in the fourth quarter of this year. “Spandex will continue to rise in the third quarter. From the supply side, only a small part of the production capacity may be put into production in July. In the latter part of the fourth quarter, if the overall production capacity is increased, it may have a certain impact on market prices, but fluctuations are expected The amplitude is not large. It will fluctuate and decline in the later period, but the amplitude is limited.”
Sports apparel companies have outstanding performance
The downstream of large refining and chemical enterprises are yarn factories and textile factories, and the most downstream is garment manufacturing and sales.
Blum Oriental is one of the world’s largest colored yarn manufacturing companies. It purchases cotton and other types of fibers from around the world and ensures a stable supply of raw materials for production through multiple channels. Recently, Blum Oriental announced that its net profit attributable to shareholders of listed companies in the first half of 2021 is expected to increase by 381.5106 million yuan to 449.6374 million yuan, a year-on-year increase of 280% to 330%. The performance forecast states that the expected increase in performance is mainly due to the comprehensive impact of factors such as the company’s overall production capacity returning to pre-epidemic levels in the first half of 2021, increased capacity utilization, increased orders, and growth in main business profits.
Regarding the rise in raw material prices in the first half of this year, staff from the investor relations department of Blum Oriental told Times Finance that although the price rise in raw materials in the first half of this year was significant, the impact was not significant. “85~90% of the raw materials of the company’s products are cotton. Since there are large reserves of cotton, it has not been greatly affected.”
Listed companies in the garment manufacturing and sales sectors also appeared differentiation. Meibang Apparel did not release a half-year performance forecast. In the first quarter of this year, net profit increased by 155.41% year-on-year, turning a loss into a profit. However, it should be pointed out that the reversal of losses was mainly due to the fact that in March this year, Meibang Apparel and its holding subsidiaries jointly sold 100% of the equity held by Shanghai Model Industry Co., Ltd., with a transaction amount of 448 million yuan.
Brands related to sports apparel products includeBetter performance. ANTA Sports recently announced that in the second quarter of 2021, the retail sales of ANTA brand products (calculated by retail value, the same below) achieved a positive growth of 35-40% compared with the same period in 2020, and the sales of FILA brand products achieved a positive growth of 30-35%. Growth, all other brand products achieved positive growth of 70-75%.
In the first half of 2021, the retail sales of ANTA brand products achieved a positive growth of 35-40% compared with the same period in 2020, and the FILA brand products achieved a positive growth of 50-55%. All Other brand products achieved positive growth of 90-95%. </p
