Spandex prices continue to rise
Recently, spandex prices and price differences have continued to rise. The price of spandex 40D has increased from 28,500 yuan/ton in September 2020 to 42,500 yuan/ton, an increase of 49.1%, the price difference of spandex 40D rose from 7295 yuan/ton to 19775 yuan/ton, an increase of 171.1%. The downstream of spandex is mainly the textile and apparel industry. Against the background of continued increase in domestic and foreign demand, the industry prosperity is expected to increase.
China’s “export substitution” during the epidemic has driven the recovery of downstream demand
Textiles, clothing and shoes during the epidemic Overseas demand in industries such as hats has been relatively slow to recover. However, due to their labor-intensive nature, India and Southeast Asia have been greatly affected by the epidemic, resulting in a large number of overseas textile orders being transferred domestically in the second half of 2020.
According to Wind data, exports of textile yarns, fabrics and products in December increased by 29.2% year-on-year, a surge in growth; during the same period, domestic Q4 was the traditional peak season again, and downstream orders recovered intensively.
Domestic chemical fiber inventories are at low levels, and the demand for overseas inventory replenishment is optimistic about the future recovery of spandex’s economy
According to CCFEI and Wind data, spandex inventory was only 17 days in early January, with price and time at the historical extremes of 4.8% and 4.6%, while U.S. wholesalers’ clothing and fabric inventories are also at historical lows year-on-year.
Under the expectation of demand-side recovery in 2021, the demand for overseas inventory replenishment is expected to drive domestic clothing exports, leaving room for repair of chemical fiber inventory. Moreover, the Q4 price inflection point of spandex has appeared, and the future prosperity can be expected.
The supply and demand pattern of spandex is ushering in a marginal improvement, and the industry’s leading performance can be expected
On the demand side, with the With the change in consumer concepts and the upgrading of consumer demand, the application scope of spandex continues to expand, and the apparent demand for spandex is still growing steadily. The current price and spread of spandex are at historical bottoms, which will help the penetration rate of spandex continue to increase.
On the supply side, the production cycle of the domestic ammonia industry is coming to an end. Only two leading companies, Xinxiang Chemical Fiber and Huafeng Chemical, are more certain to be put into production in 21-22. With their own costs With the advantage of expanding production against the trend, the industry supply pattern will be greatly improved, and industry concentration will be further increased. </p
