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    Spandex Industry Increased Difficulty In 2015.

    2015/1/5 14:38:00 32

    SpandexRaw MaterialSpandex Filament

    about

    spandex

    The reasons for falling prices are basically concentrated on several points: first, the operating rate is always high, so that the supply side has been very sufficient, and the demand growth is limited, thus driving the inventory to go up. Some production enterprises have become rational in order to reduce inventory prices; two, raw materials are still in the downstream channel.

    In the year of 2014, the decline of PTMEG price basically covered the decline of most spandex prices. The price of pure MDI also declined due to the weakness of other downstream demand at the end of the year. In addition, the price of upstream benzene was obviously affected by the fluctuation of international crude oil prices, and the market confidence was obviously insufficient.

    Under such circumstances, although spandex industry has experienced a whole year's downtrend, after the recent low turnover, it is hard to avoid a relatively weak trend in the next one to two months. Especially for enterprises with relatively cost control, the cold winter may just have opened the curtain.

    In the past two or three months,

    Raw material

    The downward trend of PTMEG prices seems to show a marked slowdown. On the one hand, its new capacity has been relatively low load, and it is still difficult to open the market in the short term. On the other hand, the downstream polyurethane industry has relatively stable load at a relatively high profit level, and has not put too much pressure on the PTMEG industry at the end of demand.

    The upstream BDO price has seen a sharp decline in the past two months, while the decline in the price of PTMEG in the middle of the year is lagging behind the BDO price. Although the recent PTMEG price has not seen a relatively rapid downward trend, it still can not rule out the possibility of a late price rise.

    While the price of another raw material MDI is relatively monopolistic, the price fluctuation does not seem to be very short-term. But in a longer period of time, the price of pure MDI is in the second half of the year, especially in the second half.

    Looking forward to the future, the price of pure MDI will remain predictable in the short term if its main downstream demand is sluggish.

    Comprehensive PTMEG and pure MDI two raw material prices, for the spandex industry, the lack of upstream industry stability support, and a considerable number of manufacturers still maintain a relatively substantial profit level, spandex prices to stabilize in the near future is still more difficult.

    Spandex operating rate is still at an ideal level, mainly in spite of recent

    Spandex

    The price has been in a downward trend, downstream procurement is subject to tight funds, are also more cautious, although the lower reaches of the market started to reduce, but the actual procurement of downstream can still maintain a certain rigid stock, and the most important point is the spandex industry after the lower raw materials, although the gross profit level has been eroded, but still far from the loss, so the overall operating rate of the industry is generally acceptable, and it can still be maintained at more than 8. However, in recent years, a number of enterprises in the industry have been carrying out load adjustment, and the pressure of inventory is constantly emerging.

    Looking forward to the future, the backlog of the spandex industry has been close to the recent high level, especially for the medium coarse denier spandex such as 40D, which has obviously slowed down after the ebb tide in the peak season. However, the shipments of 20D fine denier wires which were previously sent to the higher expectations have not yet seen a significant improvement in the shipment, and the industry inventory has been near 40 days.

    Later, if the price of spandex continues to decline, especially before the Spring Festival of February, the demand is bound to turn off after the lower concentration holidays, there will be more enterprises to adjust the load to ensure that there will be no loss.

    From the demand situation, it is still not optimistic.

    The actual demand of the industry is still at a low level, and the demand for the whole spandex market is difficult to improve substantially. After December 2014, the downstream industries such as circular machines, yarn wrapping, warp knitting and other industries began to decline, which made the spandex enterprises face greater pressure on shipping, and the price of spandex was in the downward cycle. Under the general downward trend of the lower reaches, it was only necessary to purchase, and it was hard to have the desire to make stock, and next month was about to usher in the last month before the Spring Festival. Under the condition that the downstream situation was generally not ideal this year, some enterprises even had the intention of planning for an early leave. Before the new year's day, the requirement for enterprises to withdraw funds is increasing day by day, and the entire textile industry is increasing.

    After a relatively good operating condition in 2013 and 2014, the expansion projects, especially those represented by some large enterprises in the industry, will be put into production one after another, and the supply will no longer be scarce.

    The price of raw materials will continue to decline in the second half of the year, even though the downward trend can still be maintained. All these will make the whole spandex industry difficult to operate in 2015.

    However, a well run company will still be able to maintain a good profit level in the future.


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