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    Spandex Market Rebounded In The Second Half Of The Year

    2011/8/16 10:54:00 47

    Limited Spandex Market Rebound

    In the first half of this year, spandex Raw material prices are almost at a high level. In addition to the fact that pure MDI is subject to shrinking demand in large scale applications, there is a slight drop in sales in May. The main raw material PTMEG and synthetic cost are all running at a higher price level due to the sustained high price of BDO and the increased consumption of market demand. Due to the two-way extrusion, the spandex has been in a depressed state of close to cost or even loss for half a year, and the enthusiasm for production of the spandex has obviously decreased.


    In terms of production capacity, the whole spandex industry's capacity in the first half of 2011 has been slightly increased, but the total volume is relatively small, and it is mostly part of last year's new projects. Specifically, Tai Guang chemical fiber (Changshu) Limited 5000 tons of equipment feeding, Hangzhou Blue Peacock chemical fiber annual production of 4500 tons spandex device after the Spring Festival drive, the two stage 12500 tons of spandex group and the joint venture of the Buddha and plastic equipment completed.


    Other new projects, such as the Zhejiang Confederation spandex spandex Co., Ltd., newly built 10000 tons / year project, Zhejiang Huahai group 5000 technical transformation project, and other reasons, due to the poor sales of spandex last year and other reasons, delayed the feeding time.


    In the first half of 2011, Spandex Industry The trend of starting load is low and then gradually downward. Specifically, at the beginning of the Spring Festival, some enterprises were in the habit of overhauling. With the impact of the unexpected fire and parking of the Hyosung Corp in Guangdong, the load of enterprises was obviously low. Then many enterprises resumed their production in succession, and the load increased. In April, due to the further weakness of production and marketing, the total inventory kept rising, and the pressure of enterprises maintaining stability increased.


    On the export side, although the total export volume of spandex in the first half of the year was not very different from that of the previous year, there was a significant difference between the countries' data. South Korea is particularly evident, mainly due to the weak trend of the domestic spandex market in the first half of the year, forcing some Korean enterprises to return to the international market through South Korea; Vietnam and Turkey, as a result of the establishment of factories by some foreign enterprises, have greatly satisfied their own needs, resulting in a substantial shrinkage in foreign purchases; Brazil has been turning to the cheap producing areas such as Southeast Asia because of the European and American clothing orders.


    As the "monosodium glutamate" in the textile industry, the status of spandex has always been difficult to effectively change, coupled with the rapid development of global capacity in recent years, and eventually formed the two-way expansion of the spandex and downstream industries in the first half of the year, but the overall load of the spandex plant declined in reverse direction. In the second half of this year, although many enterprises are subject to weak market expectations and other reasons, new projects have been put into operation one after another, but the obvious pull up of base numbers will still restrict their trend.


    At the same time, the macro factors will have an important impact on the market and main textile materials. The European debt crisis, the slowdown in the US economic recovery process, and domestic inflation pressure will create enormous pressure on the commodity market. The industry will face more complicated market environment in the second half of the year. In addition, the trend of cotton and polyester products will also affect the range and proportion of downstream textile varieties for spandex.


    Specifically, in July and August, it was the traditional off-season for the terminal textiles. Considering the situation of electricity limitation in summer, the weaving industry was difficult to produce and sell well. In the first half of the year, the downturn of the whole industry chain led to a large supply reduction, and the inventory of intermediaries and weaving factories was significantly lower than that of the same period. In the first half of the year, the low cost orders in the European and American markets moved to Southeast Asia partly due to factors such as quality and so on, or they would support the increase in the volume of purchases in late August. But considering the huge production base already formed in the supply field both at home and abroad, and the short term PTMEG production capacity of upstream raw materials, it is difficult to meet the market demand in the short term. It is estimated that the rebound in the total volume and price of spandex will be very limited in the second half of the year.

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