Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News Meltblown fabric prices have fallen but are there still profits to be made? The popularity of non-woven fabrics is expected to continue until the end of this year

Meltblown fabric prices have fallen but are there still profits to be made? The popularity of non-woven fabrics is expected to continue until the end of this year



As the domestic COVID-19 epidemic stabilizes, the mask industry chain, which was once popular in the market, continues to cool down. It has been previously reported that the price of meltblown cloth has plummet…

As the domestic COVID-19 epidemic stabilizes, the mask industry chain, which was once popular in the market, continues to cool down. It has been previously reported that the price of meltblown cloth has plummeted by more than 90%. However, even so, the performance of most listed companies engaged in the production of melt-blown fabrics may have been settled. Some companies’ performance in the first quarter of this year even exceeded last year’s full year performance.

Although the current market is gradually cooling down, domestic meltblown cloth manufacturers are still making profits, but for Most companies say they cannot predict the future market situation and it will depend on the development of the epidemic. For the entire industry, the sales director of a non-woven company in Anhui said that the current market is not as hot as the previous two months, but many types of non-woven fabrics are still in short supply, such as spunlace and ultra-high-end products used in the production of fast moving consumer goods. Fiber, etc. are still on the rise and are expected to continue to be popular until the end of this year.

There are still profits to be made despite falling prices

As the domestic epidemic situation stabilizes , the meltblown cloth market is gradually cooling down.

“The price of low-end products, products below level 95, has dropped sharply, but the prices of products with levels 95 and 99 are still relatively considerable, and the profits are also considerable (below level 90) Low-quality products have little profit, and no one wants them at very low prices. High-quality products are not a big problem.” A staff member of Guoen Co., Ltd. told reporters, “The company produces its own melt-blown materials, so the production cost of melt-blown cloth is relatively low. The ability to withstand price drops is strong, which is unmatched by many other meltblown fabric manufacturers.”

Guoen Co., Ltd. announced in May this year that it planned to invest in the construction of 20 meltblown cloth production lines. According to the staff of the manufacturer, the first phase has been completed and put into production for mass shipments.

As for the investment plan for the remaining production lines, the staff member said, “It depends on the overall market situation in the first phase. It is impossible to say that there is no market, (the company) still wants to do this The company will announce the specific progress of the project. If you think about it from another perspective, if an investor is the boss, would you dare to build all the remaining production lines? Everyone should take a look, and the company must also be responsible to investors.”

Staff from Midland New Materials in South China told reporters, “The company’s current orders are still relatively full. Before the epidemic, the price of meltblown cloth was around 20,000/ton. , and all are profitable. The current price is between 50,000 and 100,000 per ton, and the gross profit margin is also very high. The specific price also depends on the size of the customer’s order. In the case of high gross profit, the company’s main business in the first half of the year The profit contribution of the business is still very large.” Regarding the company’s performance in the second half of the year, the above-mentioned staff said that the details still depend on the epidemic, and the price of (meltblown cloth) in the later market is really unpredictable in the second half of the year. The situation is subject to change. There are risks but there are also certain opportunities.

The performance in the first half of this year may have been pocketed

In reporters’ investigation During the process, the listed companies concerned were tight-lipped about their performance, but a review of the public information shows that the companies concerned may have secured their performance in the first half of this year.

On April 22 this year, Yanjiang Co., Ltd. mentioned in its reply to the Shenzhen Stock Exchange’s letter of concern that in the first quarter of 2020, the company’s profit from melt-blown non-woven fabrics was approximately 17 million yuan. Accounting for about 45%, meltblown non-woven fabrics will have a greater impact on the company’s performance in the first half of 2020.

According to the above announcement, Yanjiang Co., Ltd. will start selling medical melt-blown non-woven fabrics in April. According to its calculations on April 22, taking into account the order intake and delivery status, production capacity Situation, production scheduling and other factors, this business is expected to have an impact on performance in 2020 of more than 32.9243 million yuan, accounting for 40% of the net profit for the whole year of 2019.

Research institutions have previously been relatively optimistic about the performance of relevant listed companies. On April 24, Essence Securities issued a research report saying that the price of melt-blown polypropylene has risen sharply, which is expected to provide national En Shares has increased its profits considerably, and Guo En Shares is expected to have a net profit of 570 million yuan in 2020.

On June 22 this year, the non-woven company Jinchun Co., Ltd.’s GEM trial registration-based issuance was accepted. The company’s main products are spunlace, hot air and filament superfine fiber non-woven Cloth is the raw material for the production of disinfectant wipes, masks and other civilian and medical protective products. Although Jinchun Co., Ltd. does not have melt-blown non-woven fabrics, due to the impact of the epidemic, the demand for the company’s other non-woven products has also surged.

According to the prospectus, in the first quarter of this year, Jinchun’s sales revenue increased by 13.82% compared with the same period last year, and net profit attributable to the parent increased by 206.10% year-on-year. In addition, Jinchun Shares predicts that the company’s operating income will increase by 29.30% to 33.47% year-on-year in the first half of this year, and its net profit will increase by 241.80% and 266.21% year-on-year. It is expected that the company’s net profit for the whole year of 2020 will increase significantly compared with 2019.

The popularity of non-woven fabrics is expected to continue until the end of this year

Melt Sprayed fabric is a type of non-woven fabric. Non-woven fabric is also called “non-woven fabric”, which refers to a fabric that does not require spinning or weaving. The non-woven fabric industry originated in Europe and the United States in the 1950s, and was introduced to my country in the late 1970s for industrial production. During the development process, non-woven fabrics evolved into spunbond, needle punch, spunlace, chemical bonding, and thermal bonding. , air-laid, wet, melt-blown and other processes.

Because it is the core material of medical protective masks, meltblown cloth is well known to the public. When the epidemic is serious, it is even “hard to find”. However, before the epidemic, meltblown fabrics were relatively niche in the non-woven industry. Data show that the output of spunbond non-woven fabrics in 2019 was 3.0943 million tons, accounting for 49.80% of the total non-woven production.During the same period, the output of melt-blown non-woven fabrics accounted for only 1.07% of the total non-woven fabrics.

The sales director of a non-woven company in Anhui told reporters that at present, the non-woven market is not as hot as in previous months, but many types are still in short supply, such as The demand for non-woven products such as spunlace and super fiber used in the production of fast-moving consumer goods is still increasing. Affected by the epidemic, foreign demand for non-woven fabrics has surged, and foreign supply is in short supply, which has hit China’s non-woven products. There are also a lot of textile purchase orders.

The overall market enthusiasm is expected to continue until the end of this year, but the market situation in 2021 and beyond cannot be judged. After all, in the absence of an epidemic, the market directly related to the epidemic will The non-woven industry only meets the normal consumption of the daily medical care industry. After this epidemic, consumers’ consumption behavior, habits and awareness will change, and non-woven fabrics for daily fast-moving consumer goods will have a continuing tendency.

A research report from Everbright Securities believes that in the short term, the epidemic will catalyze the demand for spunlace and melt-blown non-woven fabrics. In the future, governments and hospitals will also increase their reserves of protective equipment, and residents will be more concerned about disinfection. The demand for cleaning products such as wet wipes is also expected to grow, and this epidemic will catalyze the growth of demand for non-woven fabrics. In the future, the growth in demand for downstream medical, personal hygiene and medical care products will drive the continued growth of non-woven fabrics.

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Author: clsrich

 
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