Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News The price of spandex products has soared. What is the logic behind the boom?

The price of spandex products has soared. What is the logic behind the boom?

“Effective from February 24, the price of all specifications of spandex in our company will be increased by 5,000 yuan/ton to 15,000/ton. This is hereby notified.” A few days ago, a spandex company …

“Effective from February 24, the price of all specifications of spandex in our company will be increased by 5,000 yuan/ton to 15,000/ton. This is hereby notified.” A few days ago, a spandex company issued such a product price increase notice. In fact, this company is just one representative of many spandex companies that have recently announced price increases.

The COVID-19 epidemic that has lasted for more than a year has caused heavy damage to the global textile market. However, in the stressful environment, several sub-sectors have become Even more popular, spandex is one of them.

As the most widely used elastic fiber on the market, spandex is known as the “monosodium glutamate” of textiles. Especially as people’s pursuit of healthy and comfortable life becomes stronger, the amount of spandex used in fabrics is increasing and it has become a “comfort engine”.

At this stage, many well-known spandex companies, both internationally and domestically, are stepping up their production expansion plans. There are various signs that the spandex industry is ushering in a new round of production expansion cycle, which will also further increase the concentration of the spandex industry.

Affected by the epidemic, consumer demand for casual and sportswear has increased, driving the sales growth of spandex.

Many spandex companies are stepping up production expansion

Huafeng Chemical is the leading company in my country’s spandex industry First, it currently implements the development strategy of “adhering to strengthening the main business and moderately diversifying” and strives to build an internationally leading high-tech fiber and new material manufacturing base. Especially Huafon Chongqing base, the current annual spandex production capacity has increased to 185,000 tons, and it has become a strategic location for Huafon Chemical.

Recently, Huafon Chemical issued another announcement announcing that its holding subsidiary Huafon Chongqing Spandex Co., Ltd. will invest in the construction of a 300,000-ton/year plant in Baitao Chemical Industry Park, Fuling District, Chongqing. The differentiated spandex project has an estimated total investment of 4.36 billion yuan and will be completed in six years.

According to the announcement, the project will adopt large-capacity continuous polymerization and dry spinning process routes, all using automated, intelligent, energy-efficient, high-density multi-head spinning production lines. The project construction period is expected to be 6 years and will be implemented in three phases. The first phase will build a 50,000 tons/year project, and the construction period is expected to be 24 months; the second phase will build a 150,000 tons/year project, and the construction period is expected to be 24 months; the third phase will build a 100,000 tons/year project, and the construction The term is expected to be 24 months.

It can be found that as the project is completed and put into operation, Chongqing Huafeng’s spandex production scale will increase to approximately 500,000 tons.

“The construction of a new project with an annual output of 300,000 tons will be of great significance to the company’s development. First, it will increase the market share of the company’s products, consolidate and expand the company’s scale advantages, and enhance The right to speak in the industry will promote the concentration of the spandex industry. The second is to optimize the company’s product structure and improve the level of product differentiation, especially to increase the proportion of mid-to-high-end products and enhance profitability. The third is to improve the company’s automation and informatization level, implement a machine replacement plan to reduce labor costs. The fourth is to realize independent technology transformation, improve production efficiency, reduce energy consumption levels and production costs by adopting new technologies, new equipment, and new processes, and further improve the company’s overall competitiveness .” Huafeng Chemical said in the announcement.

The reporter also learned that many domestic companies are currently implementing spandex production expansion or technological transformation plans. For example, Zhejiang Huahai Machinery Group, which entered the spandex industry in 2003, announced last year that its subsidiary Zhuji Huahai Spandex Co., Ltd. began to promote a technological transformation project with an annual output of 120,000 tons of differentiated spandex yarn. At the same time, its subsidiary Zhejiang Huazhan New Materials Co., Ltd. It also supports the implementation of differentiated spandex technical transformation projects. The two projects, with a total investment of 2.8 billion yuan, are expected to be completed and put into production by the end of 2021. By then, they will have an annual production scale of 250,000 tons of spandex.

In addition, in order to seize market opportunities, some international spandex giants have also begun to intensively expand production. In December 2020, South Korea’s Hyosung Group announced that it would build a new spandex project with an annual output of 360,000 tons in the Ningdong Energy and Chemical Industry Base in Ningxia, my country. Hyosung Group also announced that the expansion of the company’s Turkish factory is expected to be completed in the third quarter of this year, when the annual spandex production capacity of the Turkish factory will increase from the previous 25,000 tons to 40,000 tons; the expansion of its Brazilian factory is expected to be completed in 2022. By then, the Brazilian factory’s annual spandex production capacity will increase from the previous 12,000 tons to 22,000 tons. It is understood that Hyosung Group’s current annual spandex production capacity is approximately 340,000 tons. With the subsequent expansion of its factories and the completion of new projects in various locations, its total annual spandex production capacity will increase to more than 700,000 tons.

New business opportunities are born under the epidemic situation

Since 2003, the consumption of spandex in my country has shown It has shown strong growth momentum, with an average annual compound growth rate of more than 10%. Over the past decade or so, my country’s spandex market has developed rapidly. Production and application technologies have continued to mature, application scope has continued to expand, and demand has continued and steadily increased. In particular, the demand for differentiated spandex products has increased significantly. The spandex industry as a whole has ushered in good development. opportunity. Especially during the “Thirteenth Five-Year Plan” period, my country’s localization technology of spandex has become more mature, the industrial scale has further expanded, and product quality has also improved significantly.

Statistical data from the China Chemical Fiber Industry Association shows that in 2019, my country’s spandex production was 727,000 tons, which is equivalent to 727,000 tons. An increase of 42% from 2015. In addition�Relevant statistics show that as of the end of 2020, my country’s total spandex production capacity was approximately 870,000 tons.

It is particularly noteworthy that since 2020, affected by the new coronavirus pneumonia epidemic, the spandex market has ushered in a new round of development opportunities.

On the one hand, in the first half of 2020, masks became a key material for epidemic prevention and control, and spandex filament was used to produce masks An important raw material for earbands. Driven by this demand, the spandex market was once in hot demand, with supply exceeding demand. For a period of time, products from many domestic spandex manufacturers were hard to come by.

On the other hand, affected by the epidemic, global consumers’ preferences for apparel products have changed. Since the outbreak of the epidemic, consumers around the world have generally spent more time at home. Correspondingly, the demand for leisure and sportswear products has increased, and the requirements for the comfort of clothing products have also further increased. As an elastic fiber, spandex, especially ultra-fine spandex, is an important raw material for weaving various elastic fabrics with light texture and strong comfort.

The relevant person in charge of a spandex company in Jiangsu and Zhejiang told reporters: “The epidemic has changed everyone’s lifestyle. The rise of indoor sports has made the market more interested in yoga clothes, sportswear and other products. The demand has increased, and the spandex content of these garments is generally high, which has led to an increase in the demand for spandex. In addition, the epidemic has had a greater impact abroad, which has caused many textile orders to return to China, which has also indirectly driven the The growth in demand for spandex has increased.”

Affected by the above factors, although the epidemic has caused heavy damage to the global textile market, overall, it has made spandex popular and boosted the market for spandex. Market demand has grown rapidly. This can be reflected in the performance of listed companies.

The 2020 performance forecast recently released by Huafeng Chemical shows that during the period, the company’s net profit attributable to shareholders of listed companies is expected to increase by 8.61%~35.76% year-on-year. Huafeng Chemical stated that in 2020, the company’s new spandex production capacity was successfully released; as the epidemic was effectively controlled and downstream demand recovered, the company’s production and operations showed a good development trend, and the production and sales of spandex increased significantly compared with the previous year. At the same time, the company has deeply explored the effectiveness of internal management and improved quality and efficiency. The unit cost of the main segment products has decreased compared with the same period last year, resulting in an increase in the overall gross profit margin.

Xinxiang Chemical Fiber is also one of the well-known spandex manufacturers in China. Its annual spandex production capacity is currently 120,000 tons, and there is still a new spandex production capacity of 100,000 tons under construction. Especially since the second quarter of 2020, as the demand for spandex for hygienic products such as mask earbands and protective clothing has increased significantly, the company’s revenue from spandex products has achieved substantial growth.

Public announcement data shows that in the second, third and fourth quarters of 2020, Xinxiang Chemical Fiber’s spandex business revenue increased by 31.58%, 28.02% and 63.79% respectively year-on-year. Among them, the second and third quarters were mainly reflected in the increase in sales of spandex products, while the fourth quarter saw an increase in both sales volume and unit price.

“The market for spandex was booming in the fourth quarter of last year, mainly because downstream weaving manufacturers had to prepare in advance for the production of spring and summer fabrics this year. This year, the market for spandex is also very good, and prices have increased recently. A lot. From August or September last year to now, the prices of some products have increased by more than 80%.” An industry insider said.

Looking at the overall situation of the industry, according to data from the National Bureau of Statistics, from January to November 2020, my country’s spandex production was approximately 754,000 tons, a year-on-year increase of 5.58%, accounting for approximately 754,000 tons of spandex in the same period. It accounts for 1.48% of my country’s total synthetic fiber output.

A previous report released by a global research and consulting company also predicts that the demand for spandex in the global market will continue to grow at an annual rate of 9% in the next few years.

If we look at the overall development trend of the spandex industry, greenness and intelligence will be the two important development directions in the future. At the same time, differentiated and functional products, such as for sanitary materials Spandex, dyeable spandex, ultra-comfortable spandex for use in extreme environments, etc. will have great potential. “my country’s spandex industry is currently expanding rapidly on the one hand, and on the other hand it is also at a critical stage of industrial upgrading and high-quality development. For example, Huafeng Chemical has launched green and environmentally friendly recycled spandex and bio-based spandex in Chongqing in the past two years. The new project plans to significantly increase the degree of automation and informatization, which is actually an important reflection of the future development direction of the spandex industry.” said the above-mentioned industry insider. </p

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