After three consecutive days of rising prices when construction started, the price of spandex yarn rose by 2,000 yuan/ton, and then fell into silence.
It is a common practice over the years that the price of spandex yarns does not fluctuate much. Most of them rise and fall slightly and then return to the original price. In the past two years, the joint hype of spandex manufacturers has caused the price of spandex yarns to rise rapidly from low to peak and then fall again in a short period of time. Returning to the bottom, the price of spandex yarn, which was originally small and transparent, has also attracted the attention of textile people. The price rebound at the beginning of the year will not last long as the editor predicted last time.
“The price of spandex cannot rise. Many factory machines are not fully operational, orders have not been received, and they will not buy it at all. If the spandex manufacturer increases, no one will buy it,” said a textile boss.
There is a price but no market. It is not easy to increase the price.
Entering February, the quotations of various spandex factories have begun to increase, with an average increase of about 1,000 yuan/ton. The fundamental reason for the collective price increase of spandex is the cost transmission pressure of upstream leading companies. In the past, the textile market has always been about buying up and not buying. In the past few years, the market price has been lower than the cost price. The mentality of buying raw materials has also become that no matter whether it is going up or down, I will not stock up if I can.
“We have less than half of the factory’s machines running now, and the machines can’t be started without workers arriving for the orders,” the textile boss said.
It can be seen from the startup rate of sample companies monitored by Silkdu.com that the current local startup rate is around 47.1%. Assuming that new orders are actually placed, the startup rate will not be that low. Moreover, the problem of recruiting workers this year seems to be easier than in previous years. , in the final analysis, market demand has not yet fully returned.
It is also difficult for the price of spandex to rise even if it is not available in the market. It is obvious that most of the increase at the beginning of the year was due to rising costs.
As a result, there is basically no demand from the textile market. The amount of spandex yarn used in textile fabrics does not exceed 10%, and even if the peak season comes, the price of spandex yarn will not rise too much.
At the same time, there will be a lot of new spandex production capacity in 2023. With the investment of new production capacity, the short-term “weak demand, strong supply” situation may be difficult to improve, limiting the increase in spandex prices.
It will remain stable in the later period and it will be difficult for the price to fall.
For downstream weaving manufacturers, it is not the best time to buy raw materials. Market orders have not been placed. Stocking up will cause tension in the capital chain. Textile bosses will not blindly stock up on goods. It is difficult to increase prices without demand. .
It is certain that it will not rise too much, and of course it will not fall too much. The investment in production capacity may increase inventory, but the current price of spandex yarn is already at a low level. It is even more unlikely that the price will fall as demand rebounds in the future. The cost side supports that the price of spandex cannot fall at all.
Judging from the current market, the price of spandex should not change much and will remain stable in the short term. Taking 30D as an example, the current price is 38,500 yuan/ton. In the past five years, except for the hype in the previous two years, now The price has basically returned to its original position. Without special reasons, even if it rises or falls in the future, it will be controlled between 35,000-40,000.
Judging from the current demand for spandex, post-holiday demand is average, export inquiries are still insufficient, and weaving manufacturers are also performing averagely in receiving orders after the holiday. The current high inventory of gray fabrics is dragging down the upside of raw materials. Considering the demand for stocking of spandex fabrics in summer, etc., Therefore, it is expected that the demand side may improve after March.
Generally speaking, spandex in 2023 will continue the trend before 2020 and remain basically stable. It will rise and fall slightly according to the demand cost, and the average price throughout the year will remain above the cost line.
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