No matter how high the price is, it will eventually fall! The leader of the altar is already crumbling, and spandex has fallen by nearly 20,000 yuan/ton! Since November, the price of spandex has been falling like an irresistible car, and the market price has shown a sluggish trend. How did it go up in the past, and now it has to come down!
It’s impossible not to give up profits!
The profits of spandex manufacturers this year are higher than in previous years, especially from July to October. The price of spandex has always been high, and the start of production is also running at a high level. But at that time, the market was far from being as cold as it is now, and production capacity increased. Naturally, There are downstream users who pay the bill. However, the current market excitement is far from enough for spandex manufacturers to maintain the same operating situation as in the early period.
In addition, in the fourth quarter, the industry concentrated on new capacity expansion. Many major spandex manufacturers have completed the construction of new devices some time ago and have put them into operation. As a result, the production capacity has increased a lot compared to before, but it is difficult to ship new goods. Already pressure has come with it.
Because the relationship between supply and demand is now beginning to change, downstream demand is relatively flat due to various factors, and startups are far lower than in the previous period. And now that the weather is getting colder and the epidemic is recurring, there are fewer orders at the end of the year, and downstream buyers are buying up instead of down, etc., the overall spandex market is in an unbalanced state, and inventories are accumulating. At this time, spandex manufacturers are also It was hard to sit still and I had to take some action.
Spandex prices go downhill
It is absolutely impossible to continue to sell well below production, so spandex manufacturers are also worried. Since November, we have also seen the price of spandex drop sharply, with low prices and substantial profit concessions. As 40D spandex has entered the 60,000 yuan/ton node, if it continues to decline, it will soon enter the cost line of the current price. The price cuts of 20D spandex and 30D spandex will also follow suit.
In the past two months, 20D spandex has dropped by 18,000 yuan/ton, 30D spandex has dropped by 15,500 yuan/ton, and 40D spandex has dropped by 16,500 yuan/ton, with year-on-year declines of 17.73%, 17.42%, and 21.3% respectively. Although the downstream follow-up situation is not good, spandex is still profitable at present, and it is not a bad idea to make some concessions for production and sales. However, judging from the data and actual situation, spandex will continue to bottom out in the short term. possible.
A flat market is expected
The editor asked a manufacturer that specializes in four-sided bombs. It is understood that half of the factory is currently on holiday! Not long ago, the editor also asked many manufacturers, and most of them said they would have holidays around mid-to-late January. It’s a bit surprising that this holiday is a little early. The boss said that he mainly sells spot goods, and his business is a little bit good now, but he just buys some four-sided bombs from them to stock up, and the market will remain the same.
However, another manufacturer that makes thickened four-sided elastic told the editor that it is still making orders for thickened four-sided elastic. Not long ago, the customer added about 400,000 meters more. The orders in the factory are good, the machines are in full operation, and a lot of spandex has been purchased, but they are only purchased on demand. I feel that there is a possibility that the spandex will continue to decline. However, the orders placed by this company have always been old customers. Most other manufacturers have reported that orders are low, but this is understandable. After all, the Chinese New Year is coming soon. The downstream market is currently in a situation where customers are preparing some goods for follow-up plans and although there are orders, there are not many. It is still difficult to have a good sales environment for spandex.
The continuous decline of spandex also makes people feel that if the imbalance between market supply and demand cannot be improved, the financial pressure on manufacturers will continue to increase, and it is inevitable that the enthusiasm for purchasing raw materials will decline.
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