Introduction:
According to Zhuochuang data monitoring, in the next five years, the domestic spandex market will enter a new round of capacity expansion and growth. About 500,000 tons of differentiated spandex equipment is planned to be put into production, accounting for The current production capacity is 56%. In recent years, the contradiction between supply and demand in the spandex industry has not improved significantly, and the supply and demand relationship in the domestic spandex market may be greatly tested in the future. The pattern of the spandex industry is gradually taking shape, with the CR5 industry concentration rising from 68% to about 76%. This article will give you an in-depth interpretation of where the market will go behind the dramatic changes in the industry’s production capacity structure.
Tips on spandex:
Spandex products, also known as polyurethane elastic fibers, are the most elastic synthetic fibers to date, with high elongation and high resilience. , fatigue resistance and other characteristics, it is widely used in various fields such as textile clothing, medical care and automobile interior decoration. It is a textile raw material with excellent comprehensive properties. It is understood that Shandong Taihe New Materials (formerly Yantai Spandex Company) was the first to enter the spandex industry in China. In 1989, the first phase of the spandex project was put into operation with an annual output of 320 tons. Domestic spandex production has been going on for more than 30 years. From the earliest conventional product production to the later differentiated production and application, spandex has become more diversified. Due to its excellent characteristics, spandex is called the “monosodium glutamate” of textiles and is widely used in various applications. Among clothing fabrics, there are currently no substitute products.
Historical review of spandex production capacity expansion
Looking back on the past, domestic production capacity is divided into an expansion period and a consolidation period. The peak period of expansion is basically divided into two stages:
(1) From 2003 to 2005, there were more new entrants in the industry, and more new production capacity was added. The new production capacity during the year was about 50,000 tons;
(2) 2014-2016 In 2017, it was mainly reflected in the expansion of factory production capacity, with an additional production capacity of approximately 140,000 tons; the industry consolidation period was mainly concentrated in 2017-2019. Some domestic spandex companies gradually eliminated backward production capacity. In addition, the industry development boom declined, and spandex prices were at the bottom. Have been lingering for a long time.
Peak period of expansion (1): The spandex industry has just entered the domestic market and is an aristocratic industry. The production technology is relatively imperfect and the equipment needs to be purchased from outside. However, it is precisely because it is a new industry and there is a large space for development that it attracts some companies to enter. At first, the production capacity was relatively small, and the number of companies was only a dozen. As the industry developed, it gradually expanded to more than 20, and The production capacity is gradually approaching that of enterprises with a scale of 10,000 tons.
Peak period of expansion (2): 2014-2016, the new domestic spandex production capacity is about 140,000 tons, and the average annual load growth rate of production capacity is about 10. 5%. The main body of industry expansion at this stage Mainly concentrated in leading enterprises with large scale and strong financial strength, especially several listed and state-owned enterprises, the concentration of spandex industry has increased significantly.
Industry consolidation stage: After 2016, the spandex industry entered a reshuffle stage. Rapid capacity expansion has made overcapacity in domestic spandex production the norm. After more than ten years of development, some spandex companies’ production equipment is facing elimination, and various costs continue to increase. This puts individual companies under great pressure to survive and gradually chooses to withdraw from the market. Although some companies Backward production capacity has been eliminated, but it is far less than the growth rate of new production capacity, and the industry has entered a reshuffle stage.
Analysis of production capacity structure in 2020
The concentration of production capacity in the spandex industry continues to increase, but the position of leading companies is basically positioned. TOP companies are mainly concentrated in listed companies. The market’s voice has increased. According to the analysis of financial reports of listed companies, operating profits have shown a gradual upward trend in the past five years, increasing from -295.69 yuan in 2015 to 2132.12 yuan in 2019. As of the end of September 2020, operating profits were 1460.44 yuan, and operating profits showed a main upward trend. However, the homogenization of products in the spandex market has intensified competition. 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.
A new round of production capacity expansion and a planned project under construction
The new round of production capacity expansion may cause certain changes in the production capacity structure. The supply and demand situation is still in a situation of oversupply. Since the public health incident in 2020, there are optimistic expectations for 2021 from the perspective of macro policies and terminal market demand. However, after the expansion of spandex production capacity accelerates, the growth rate of terminal demand may be lower than expected. Even less than the supply speed, so the price center of gravity may shift downward in stages, the pricing power in the industry will shift downward, and competition among enterprises will be fierce.
From the production capacity statistics table, the position of the leading domestic spandex companies has basically been finalized, and the industry concentration continues to increase. The market share of TOP5 companies accounts for about 76%, and new production capacity will be added in the future. Still dominated by leading enterprises, the distribution pattern of production capacity has not changed much. Pay close attention to the progress of the release of new production capacity.
The impact on the market after the expansion of spandex production capacity
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 The release of 500,000 tons of new production capacity will have a certain impact on the market, and the market competition will become more intense, rather than just 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. Under the current imbalance between supply and demand, there will be a trend of further intensification in the future.��
Judging from the price increase of chemical fiber products in the second half of 2020, the price increase of spandex is greater than that of other chemical fiber products. It is not only the cost boost, but also the follow-up of terminal demand, coupled with the tight supply of spandex manufacturers. etc., pushing the price of spandex upward in a wide range. There is less new spandex production capacity this year, due to the concentrated expansion of production capacity in the past few years and the conflicting relationship with current demand after its release. It has also triggered 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 insiders are optimistic about the future development of spandex. </p
