When it comes to what raw material I’m most happy selling these days, there’s no doubt that it’s spandex sales.
A friend who sells spandex said that during the off-season of spandex, he would go to one weaving factory to sell it, and he might not be able to accomplish much even if his mouth was dry. But now it can be said that ” “Salted fish turn around”, textile bosses take the initiative to inquire about prices, and it often happens that they can’t get the goods even if they have money.
The “tyrannical president” in the raw material industry: The price has increased by more than 10,000 yuan/ton in recent months!
Spandex can be said to be the “tyrant” in the raw material industry. It either does not rise or rises by 500 or 1,000 yuan. There are even cases where spandex rises by 3,000 yuan/ton within a month. It is understood that the price of spandex has increased to nearly 10,000 yuan/ton since August.
According to price monitoring, the domestic spandex market continued to maintain an upward trend in November. As of November 27, the average ex-factory price of 40D was 41,100 yuan/ton, an increase of 10.48% from the beginning of the month and a year-on-year increase of 30.48%.
Spandex demand has picked up, prices have risen, and inventory has reached a low in the past four years
With the change in consumer concepts and the upgrading of consumer demand, the application scope of spandex continues to expand. , the addition ratio increased, and apparent demand grew steadily. And due to the unique elasticity and increasingly differentiated functionality of spandex products, there will be no high-quality substitutes in the foreseeable future.
As substantial progress has been made in the research and development of the new crown vaccine, overseas economic recovery trends are significant; at the same time, it has recently coincided with the peak consumption seasons such as Thanksgiving and Christmas in the West, and spandex exports have increased significantly. The “Silver Ten” domestic textile industry chain also ushered in a wave of recovery. The domestic “Double Eleven” effect combined with the release of foreign demand drove the inventory replenishment and inventory transfer of the spandex industry. The inventory days were as low as 14 days, and the inventory level was the lowest in the past four years. point.
At present, the spandex industry has started operating at around 90%. The supply shortage of manufacturers has not yet eased, and the supply of some sources of goods is still tight.
The spandex market is in reshuffle: small factories are being dragged down, and leading companies are making a lot of money!
The concentration of production capacity in the spandex industry continues to increase, and the position of leading companies is basically positioned. Leading companies are mainly concentrated in listed companies, and their market weight has increased. According to the analysis of listed company financial reports, operating profits have shown a positive trend in the past five years. There has been a gradual upward trend, from 29.569 billion yuan in 2015 to 213.212 billion yuan in 2019. As of the end of September 2020, the operating profit was 146.044 billion yuan, and the operating profit showed a main upward trend. Although competition among homogeneous products in the spandex market has intensified, leading enterprises have certain advantages in production and are gradually migrating to the west. Various policy supports have brought certain impetus to the development of the spandex industry.
Judging from the production capacity statistics table, the position of domestic spandex leading companies has basically been finalized, and industry concentration continues to increase. The market share of TOP5 companies accounts for about 76%. In the future, the new production capacity will still be dominated by leading companies. , the production capacity distribution pattern has not changed much, and we pay close attention to the progress of the release of new production capacity.
From the supply side, the total effective domestic spandex production capacity reached 850,000 tons in 2019, a year-on-year growth rate of 7%, and the nominal production capacity was 900,000 tons. Capacity utilization is around 85%. The expansion of spandex production capacity has come to an end. Many backward small production capacities have been shut down or are on the verge of shutting down. CR5 has increased from 45% in 2014 to 67% currently. The industry reshuffle has further intensified and the industry concentration has further increased.
The increase is significantly greater than that of other chemical fiber products. Industry insiders are optimistic about the future development of spandex!
In the future, new production capacity will be put on the market in stages, but each spandex manufacturer has different plans. In the next five years, about 500,000 tons of new production capacity will be released, which will have a certain impact on the market. Market competition will become more intense, not Blindly engage in a price war. However, from the perspective of supply and demand, the foreseeable growth rate of production capacity is greater than the growth rate of demand, and the current imbalance between supply and demand will tend to further intensify in the future.
Spandex’s new expansion plan:
Judging from the price increase of chemical fiber products in the second half of the year, the price increase of spandex is greater than that of other chemical fiber products. It is not only cost assistance. In addition, there is follow-up demand from terminals, coupled with the tight supply of spandex manufacturers, etc., pushing the price of spandex up broadly.
There is less new spandex production capacity this year, due to the conflicting relationship between the concentrated expansion of production capacity in the past few years and the release of spandex and current demand. At the same time, there are various speculations in the industry about a new round of rise in spandex prices and the continued cycle of rises. Judging from the performance of the downstream industry, there are slight signs of recovery in demand in the downstream sector, and industry players are optimistic about the future development of spandex. </p
