From 28,000 yuan/ton half a year ago to 46,000 yuan/ton now, the price of spandex has been on an elevator.
“As far as I know, the inventory of our peers is now very low, and the supply of products exceeds demand.” The person in charge of a listed company that produces spandex told reporters. Recently, many institutions have predicted that spandex will maintain its prosperity for a long time, driven by the continued demand for downstream textiles.
The price of spandex 40D, which was 28,000 yuan per ton in early August last year, has soared to 46,000 yuan per ton in half a year. Source: Baichuan Yingfu
A few days ago, related listed companies that produce spandex have also made frequent moves to increase production capacity.
Why has spandex become so popular?
Spandex, also known as polyurethane elastic fiber, is a highly elastic fiber with the characteristics of large elongation, good fatigue resistance, and good dyeability. It is widely used in textiles and clothing.
At present, the global spandex production capacity is mainly in my country. According to data from the China Chemical Fiber Information Network, the production capacity of the domestic spandex industry has climbed from about 480,000 tons/year in 2012 to about 850,000 tons/year in 2019, with an average annual compound growth rate of 8.59%. The new production capacity is mainly concentrated in large and medium-sized spandex manufacturers, and industry concentration continues to increase.
The production capacity of the domestic spandex industry has grown steadily from 2012 to 2019. Data source: China Chemical Fiber Information Network
At present, the main leading domestic spandex companies are Huafeng Spandex, Xinxiang Chemical Fiber, Huahai Spandex, Taihe New Materials, etc. The combined production capacity of these companies accounts for half of the country.
Huafeng Chemical, a leading domestic spandex company, has increased by more than 44% during the year. Source: Wind
Zheshang Securities believes in the latest research report that the pressured demand for textile clothing will improve in 2020, and chemical fiber export orders will continue to increase. The export volume of spandex has increased significantly year-on-year for five consecutive months, and domestic leading companies are expected to gain more international market share.
The industry leader is rapidly expanding its production capacity
Huafeng Chemical: Plans to add 300,000 tons of differentiated spandex production capacity within 6 years
Recently, Huafeng Chemical, the largest leading spandex company in China, announced that it plans to invest 4.36 billion yuan in a new 300,000 tons/year differentiated spandex project within 6 years.
It is understood that the company currently has 185,000 tons of spandex production capacity, and Chongqing’s 40,000 tons production capacity is expected to be put into production at the end of this year. If the company plans to add 300,000 tons/year of differentiated spandex within 6 years, the company’s spandex will be The production capacity will exceed 500,000 tons/year, and the company’s cost advantage of spandex will be further highlighted.
According to calculations by Zheshang Securities, the investment per ton of the 300,000 tons/year spandex project is 14,500 yuan, which is lower than the 60,000 tons/year spandex project in Chongqing (the investment per ton is 33,300 yuan). 56.5%. At the same time, the company gradually increases the proportion of differentiated spandex, and the profit margin will be further improved.
Previously, the company released a performance forecast for 2020. The company estimated that the net profit attributable to the parent company last year would be 2 billion yuan to 2.5 billion yuan, a year-on-year increase of 8.6% to 35.8%. Among them, the net profit attributable to the parent company in the fourth quarter was 759 million yuan to 1.259 billion yuan, a sharp increase of 31.8% to 65.9% from the previous quarter. The company said that its fourth-quarter results far exceeded expectations mainly because the volume and price of its main products spandex and adipic acid increased. Recently, the company said during a survey by the reception organization that the company is currently at full production and inventory is low. The second phase of the company’s 100,000-ton differentiated spandex project is under construction and is expected to be put into production before the end of this year.
Xinxiang Chemical Fiber: Wants to increase its production capacity of high-quality ultra-fine denier spandex fiber by 100,000 tons/year
Recently, Xinxiang Chemical Fiber released the “2020 Non-Public Issuance Stock Plan” (Second Revised Draft). The company plans to raise no more than 991 million yuan in non-public funds, which will be mainly used to invest in the construction of the first phase of a high-quality ultra-fine denier spandex fiber project with an annual output of 100,000 tons and to supplement working capital. The company stated that the implementation of the investment project with raised funds will optimize the company’s existing product structure, strengthen the development strategy of spandex products, and increase the company’s market share and comprehensive competitive strength in the spandex industry.
Source: Xinxiang Chemical Fiber Announcement
On February 5, Xinxiang Chemical Fiber, together with relevant intermediaries, responded to the China Securities Regulatory Commission regarding this In the reply to the “Notification Letter” of the non-public issuance, the company’s spandex sales in 2020 were specifically mentioned.
According to the announcement, in the last three quarters of 2020, the company’s spandex business revenue achieved year-on-year growth of 31.58%, 28.02%, and 63.79% respectively. The significant year-on-year growth in revenue in the fourth quarter was mainly due to sales volume and unit price. Due to double rise.
It is understood that the company’s spandex products are currently in short supply and the sales of spandex products are good.
Taihe New Materials: 45,000 tons of new production capacity is expected to be put into operation around the end of the year
Taihe New Materials is the first spandex manufacturer in China. At the end of last year, the company stated in a survey by institutional investors that it currently has a spandex production capacity of 45,000 tons and is in a state of relocation.��. The Ningxia base has 30,000 tons of spandex (72.5% equity). Currently, Yantai has a production capacity of 15,000 tons and Ningxia has a production capacity of 40,000 tons, both of which will be put into production around the end of 2021.
The company stated that its current inventory of spandex is very low. Coarse-denier spandex has a competitive advantage and is sold at a higher price than conventional varieties. </p
