Last week, the price of spandex yarn dropped by 300 yuan/ton!
You must know that the price of spandex yarn has been stable for half a year, and in recent months it has been as stable as an old dog. However, raw materials such as spandex have never seen big storms, and a mere 300 yuan drop is not surprising to it.
There is a price but no market, it is difficult to rise or fall
Since the beginning of this year, the price increase of spandex yarn seems to have only occurred at the beginning of the year. Most raw materials have experienced a good start, but the wave of decline after the good start has really brought a big blow to the spandex yarn manufacturers.
The price of spandex yarn, taking 30D as an example, is currently 34,700 yuan/ton. In fact, the middle price has also increased, but most of it follows the increase of only one or two hundred on the cost side, so people are not actually very concerned about it. After all, for textile people , this year’s spandex products are not popular.
Although the amount of spandex yarn used in textile fabrics is less than 10%, its high price has directly raised the market price of spandex-containing fabrics. In the past few years, the price of spandex yarn has soared. First of all, because of the scarcity of spandex yarn production capacity, most of them are It needs to be imported, and even the price of domestic spandex yarn is at a relatively high level. The second reason is that elastic fabrics containing spandex are the most popular fabrics on the market.
However, due to the high price of spandex yarn and the shortcomings of spandex yarn being difficult to store, spandex-containing fabrics are now being replaced by many spandex-free elastic fabrics, and the demand has naturally decreased.
Since experiencing the “roller coaster” rise and fall, spandex yarn has returned to calm.
As production capacity increases, it is no longer “valuable”.
Spandex yarn is no longer as rare as domestic manufacturers in the past. With the development of the industrial textile industry in the past two years, the consumption of spandex has increased, promoting the emergence of new production capacity.
China’s total annual spandex output in 2023 will be 860,000 tons, a year-on-year increase of 11.98%. From the perspective of output changes, weaving manufacturers had low output during the Spring Festival holiday from January to February. After the Spring Festival, as demand recovered, the load of spandex gradually increased, and new production capacity was put into production one after another, driving the output in 2023 to increase year-on-year. Among them, the increase in March was the most obvious, month-on-month. An increase of 28%.
In the second quarter, the downstream load decreased first. Leading enterprises in particular in spandex reduced production voluntarily, and the industry’s start-up dropped to around 7 cities, down 10% year-on-year. The market “limited production to ensure price, and traded price for volume” became the norm. In the second half of the year, industry cost pressure became more prominent, making the industry The operating load declined slightly, resulting in a contraction in overall output. The demand for Jinjiujiang increased and the supply recovered. The order situation after the National Day was weak. Most manufacturers reported that they were not accepting new orders well, and the industry load did not increase significantly. With the end of Double 11, the off-season for the industry became obvious, and the market volume and price fell.
For spandex yarn, it is not yet facing a loss situation, but it has entered an era of small profits. With the launch of new production capacity and weak demand, the price competition among major manufacturers will definitely become more and more intense, although it may not There has been a situation like last year’s huge losses, but the industry’s profitability is not optimistic.
Raw materials such as spandex yarn have also experienced strong winds and waves. It fell from the high end to the bottom in less than a year. For it, the rise and fall of hundreds of dollars is no longer the focus of discussion. With the prominence of other elastic fabrics, spandex yarn is in the Textile fabrics will occupy an increasingly smaller part, and subsequent price drops will also account for a large proportion. Although it cannot be said to be losing money now, as costs increase and demand is insufficient, spandex manufacturers can still sit still despite the price and lack of market. Live?
In today’s world, both weavers and raw material merchants are worried about profits, and the days to come will only be more difficult.
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