The raw material of spandex yarn can be considered to have experienced “big storms”. The roller coaster-like rise and fall in the past few years has made it the main target of textile people’s chat after dinner, but now its situation is…
It keeps falling!
Spandex has continued to fluctuate and fall since March, and the decline in the second quarter is even more obvious. In fact, both spandex manufacturers and weaving manufacturers hope that the spandex yarn will increase slightly, but this spandex yarn just does not live up to expectations, except for the period just after the holiday. In addition to following the trend, prices have been falling since then.
At the beginning of 2023, the price of 30D spandex yarn rose to 40,000 yuan/ton. It was not until March that the price began to fall. The current price of 30D is 34,500 yuan/ton. In less than half a year, the price fell back to 5,500 yuan/ton. Looking back at the price before the sharp rise and fall, The price of 30D spandex has remained at around 35,000 yuan/ton in 2019, and the current price is even lower than four years ago.
Overcapacity
The reason why the price of spandex yarn was so high before was because three years ago, domestic spandex production capacity was small and much of it was imported. In the past two years, the new spandex production capacity has grown rapidly.
However, domestic epidemic prevention and control policies have been fully optimized in 2023, but the recovery pace of domestic demand is uneven, and terminal demand in various fields such as food, clothing, housing, and transportation is somewhat differentiated. Among them, the catering, tourism and other service industries have rebounded quickly, and the demand for clothing has recovered slowly. With the emergence of substitute products for low-end products, the overall oversupply problem in the spandex market cannot be alleviated in the short term.
Demand is not high
The overall market this year reflects poor foreign trade exports. The cumulative export volume of spandex from January to April 2023 was 22,766.92 tons, a decrease of 6,873.59 tons compared with the same period last year, and a year-on-year decrease of 23.19%. Poor foreign trade demand is one of the main reasons why spandex yarn prices are difficult to rise.
The amount of spandex yarn used in textiles is generally not large, usually between 3% and 10%. However, since this year, the sales volume of four-way elastic fabrics that require spandex in the overall market is not good. The first half of the year is dominated by imitation silk spring and summer fabrics. The popularity of this type of stretch fabric is very average. In addition, many stretch fabrics that do not contain spandex are better than spandex stretch fabrics in many attributes. The reduction in textile demand will directly reduce In the past two years, spandex yarn has been used. The demand side support is weak, and there is still resistance to the rise of spandex in the short term.
cost impact
As the upstream of spandex, PTEMG and pure MDI have very small fluctuations in the short term. The price of PTEMG has basically remained at around 19,300 yuan/ton, and the price of pure MDI has remained at 19,350 yuan/ton. There is no favorable support from the cost side or the supply and demand side. The overall confidence in the market outlook is insufficient, and the spandex market sentiment is average.
Nowadays, the production capacity of spandex yarn is increasing and the inventory is being accumulated, and the competition among peers is also very fierce, just like the “price war” in the weaving market. The cost of spandex yarn has not changed much, and poor demand has put great pressure on spandex manufacturers. Although some spandex manufacturers have reduced their burdens to avoid risks, entering the traditional low demand season in June, the contradiction between market supply and demand is difficult to alleviate, and prices will continue to decline in the short term.
In the off-season, textile companies have seen a significant drop in order receipts. Even reducing startups will lead to an increase in inventory. The overall market’s production enthusiasm has declined. Most companies have adjusted their startup rates and maintained small quantities of production. The demand for spandex yarn will drop significantly again, the market center of gravity will remain weak and volatile, and it will be difficult for prices to rise in the short term.
However, with the arrival of the peak season in the second half of the year, the hot sales of autumn and winter fabrics may drive a wave of increase in the price of spandex yarn.
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