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    Spandex Price Rise Is Expected To Enhance Corporate Profitability

    2013/7/28 18:38:00 23

    EnterpriseBrandFashion Brand

    < p > a survey of spandex industry recently found that many of the spandex production enterprises started at full load during the off-season, and some varieties even showed signs of supply exceeding demand. Insiders pointed out that at present, spandex stock is at a low level, and the industry has less capacity in 2013/14, and the price of spandex is expected to be strong in the peak season. < /p >
    < p > price increase is expected to be strong < /p >.
    < p > "the company is now in full production stage. At present, the supply of 40d spandex is tight, and the price of 20d spandex has risen. It is estimated that the possibility of increasing the price of 40d spandex in August will be greater." Thai and new materials related to the China Securities Journal reporter revealed. < /p >
    < p > this year, the spandex market has continued to be relatively tight, and the stock keeps a reasonable level, of which 40d spandex is slightly more popular. Analysts pointed out that with the improvement of supply and demand pattern, spandex will usher in a recovery cycle of about two years. < /p >
    < p > from the supply side, the total capacity of the industry is currently 480 thousand tons. At present, domestic spandex enterprises start up rate of more than 90%, has basically full load production. In terms of new capacity, before 2015, the expanded output was only less than 30 thousand tons, with an increase of about 6%, with limited output. It is reported that China's Spandex output accounts for 60%-70% of the global share, and in recent years, foreign capacity expansion is less. < /p >
    From P demand, the growth of domestic demand and the revival of external demand provide short-term support for the rapid growth of spandex demand. Insiders said, domestic demand, domestic downstream a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > industry inventory level improvement, < a target= "_blank" href= "http://www.91se91.com/" > textile > _blank > industry demand gradually showed signs of warming, driving spandex demand recovery; external demand, as the main market of spandex terminal in North America, the United States took the lead in recovery, the Japanese market follow suit, all to the spandex demand brought more than expected pull. < /p >
    < p > industry expects that spandex prices will continue to rise in the next 6-12 months. At present, the average operation rate of the spandex downstream is only about 40%, but the downstream will enter the peak season in the second half of the year, and the price of spandex will probably rise by 3000-5000 yuan / ton, or 8-9 months or more. Moreover, the supply and demand situation of spandex will be more intense in 2014, and prices will continue to rise or maintain at a higher level. < /p >
    < p > enterprise profitability level > /p >
    < p > the overall supply of the spandex industry is relatively tight, and the price of upstream raw materials has shown a slight downward trend. For example, the price of the new spandex spandex has exceeded the breakeven point, and the gross profit margin of the enterprise will also rise with the increase of the price. Analysts said. < /p >
    < p > it is understood that entering the July, the upstream raw material BDO price continued to be weak, the seller appeared a small profit margin behavior, PTMEG's market price was stable, and pure MDI price showed a slight downward trend, the decrease was 100 yuan / ton. < /p >
    < p > industry insiders pointed out that the market situation of upstream raw materials of spandex will continue to show a small trend of consolidation, and spandex fiber enterprises are striving for higher profits under the premise of striving for market stability. < /p >
    < p > the increase in downstream demand has also become an important factor in the increase of corporate profits. "After entering the autumn, the market of spandex will be better with heavy sports clothes and casual fabrics, and elastic fibers will be widely used downstream." Textile industry analyst briefed the China Securities Journal reporter. < /p >
    < p > industry pointed out that the market of polyurethane fiber in July is basically stable, and the downstream business is not ideal. In the off-season, we can not give spandex market momentum. However, the demand for the spandex market will definitely increase after entering the autumn, which will definitely lead to a new round of price high price of spandex fiber. < /p >
    < p > China National Securities recently conducted a survey on Huafeng spandex, and concluded that "40D spandex is in good demand at present and has the possibility of exceeding expectations". Analyst Qi Qiushi said, "at present, the demand for 40D regular varieties is increasing. The demand for spandex industry in the off-season is 6, 7, 8 and three months. During this period, if the demand of spandex 40D can be maintained at present, it will probably make the off-season not light this year, when the spandex industry still has the possibility of exceeding the expected performance. < /p >
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