Spandex Industry Raised 2000 Yuan / Ton &Nbsp, Gross Margin Increased To 28%.

Eleven after the golden week, the spandex market continued the trend of rising before the national day, and there was a further rise.

First,

The price of PTMEG and MDI continued to rise slightly in the early and late national day. Some PTMEG producers still had little stock. The quantity of raw materials purchased by the downstream part of the spandex enterprise was general, while the pure MDI price had a marked improvement compared with that of PTMEG. Especially after the rising price of foreign companies, the price of MDI companies also strengthened the confidence of MDI manufacturers and traders. In the domestic area, some people believe that the October MDI contract price should be higher than that in September, because the upstream raw materials in other countries will gradually increase in the fourth quarter, which will bring good news to the domestic market.

In addition, due to a large number of equipment overhaul in Asia, MDI prices in Asia will probably continue to rise in October and supply of spot materials is limited, so MDI producers will continue to push up product prices in October.

The supply of BDO market in China is still rather tense, and the demand for the downstream enterprises has increased, which has led to the rising trend of the market.

Manufacturers in the domestic area are generally supplied to contract customers, so they are not easy to quote, but they are also very optimistic about the downstream market. Domestic manufacturers also plan to continue to pull up the market price of BDO, and the BDO market offers less. At present, the general price of BDO is 19800-20500 yuan / ton.

Two.

Due to the implementation of the electricity restriction policy in southern Zhejiang and Jiangsu, the power restriction measures in Shandong and Northern Jiangsu have also been implemented recently.

Jiangsu Lianyungang Eucommia spandex Co., Ltd. received the notice of power restriction during the national day. Although it is consulting with the power supply department at present, it is expected to have a certain impact on the future market.

Yantai Wanhua restricted film, the MDI device operating rate has begun to decline; HUNTSMAN will also be servicing for 2-3 weeks at the end of 10.

Around October 15th, the NPU 200 thousand tons of Japan's equipment will be restarted. If production is smooth, the import to China will increase in November. This will ease the domestic MDI supply slightly. The BASF Belgium device will be restarted in mid October, but the supply to the Chinese market will be at least in late December or January.

All these factors will affect the production of MDI and the pressure of supply is greater. So the price rise of pure MDI in October is logical.

Three, double pressure affects downstream

After the financial crisis receded, the textile industry, which was slightly warmer, began to be weighed down by the appreciation of the renminbi and the appreciation of cotton prices.

The appreciation of RMB has a certain negative impact on China's exports, and textile and apparel industry as a high dependence on foreign trade is more sensitive to the change of RMB exchange rate. The net profit margin of the textile industry will be reduced by 1% if the value of RMB rises by 1%, and the profit space will be further reduced for the textile industry whose profit margins are already low. Therefore, the export of the whole industry will be adversely affected by the appreciation. Some industry insiders predict that the export recovery of the textile and garment industry will slow down in the fourth quarter of this year.

Recently, the imbalance between supply and demand of cotton has led to the continuous rise of cotton prices, the economic recovery, and the rapid development of domestic textile industry, which has led to an increase in cotton demand. However, due to the low cotton purchase price last year, the enthusiasm of cotton growers has been affected, and the cotton area in our province has decreased by about 5% this year.

Coupled with the impact of disaster factors on the main cotton producing areas in the world, output has declined, and the government of India has reduced cotton exports, exacerbating the tension in global cotton supply.

This is the imbalance between supply and demand, which makes cotton price rise madly. This also affects the cost of raw materials in the textile industry. Some textile enterprises are beginning to miss this round of cotton price rise. Many small and medium-sized textile enterprises are under pressure and are faced with the dilemma of "single can not do".

The hovering of the textile industry has a direct impact on the demand for spandex, so although the price of Spandex Products is rising sporadically, it can not be too optimistic for the future market and is unlikely to break through the first half of the year.

Four, the impact of other factors

In the four quarter, the supply and demand of spandex is basically balanced in the short term. The price of spandex is not high, and there is still a distance from the high point in the first half. Before the price increase, the average gross margin level of the spandex industry is about 22-25%. After raising the price of 2000 yuan / ton, the gross profit margin is raised to about 28%.

Statistics show that in the past 2009-2010 years, a total of 61 thousand tons of spandex have been produced in China, of which 5000-6000 tons have been produced in 2010, and the output is expected to reach 6-7 tons in 2011. This will have a great impact on the industry.