Spandex prices are good or bad?

The long-awaited Spandex price increase plan was finally implemented before the peak sales season.

The spandex industry association meeting recently held reached a unified intention to increase, but before that, some companies have already raised prices slightly. According to the data, taking the common 40D as an example, on October 31st, the quotation of several enterprises in Jiangsu and Zhejiang reached 47,000 yuan per ton, while the quotation on October 15 was only 45,000 yuan. It is reported that the inventory is low, the cost of high-pressure support firm firmer after the specification rose, with the soft end of the textile industry, the buyer is expected to pull down the strong resistance, demand, etc., resulting in the spandex market continued to be small single-demand, 40D Low price disappeared trading pattern.

According to industry insiders, the malicious price war in the background of severe excess production capacity in 2011 also made most of the companies struggling. To avoid repeating the mistakes of the previous year this year, under the leadership of some large companies, industry associations finally reached an initiative to limit production and limit prices. Consensus to protect the overall interests of the industry.

An accidental fire at Huafeng Spandex has provided a brighter reason for this collective price increase and it has been fully utilized. Although the domestic spandex production capacity is already around 500,000 tons, the news of a 2,000-ton reduction in production is still being magnified by the market. Some market reports even state that “short-term supply of the industry's leading suppliers will reduce, which will cause imbalance in supply and demand.”

In the case of an overall loss in the industry, it is understandable to find a reason to raise prices. The further question is whether price increases can be accepted by downstream companies and whether there is room for further price increases. The reporter interviewed a number of companies in the industry. The general view is cautiously optimistic.

"The future price will be unclear. As long as the entire industry is working together and there is no expansion of production, there is still hope." A spandex executive said to reporters.

Analysis of the relevant person in charge of Woori Holdings, "the price increase is certainly a good thing, but I personally do not think there is much room for growth, the downstream clothing industry has not yet seen signs of recovery."

According to public information, currently the top three spandex production enterprises in China have all been listed. Among them, Huafeng Spandex's production capacity is 42,000 tons, and Taihe Xinmian's spandex production capacity is also as high as 37,000 tons. Urumqi Holdings, which successfully introduced Nisshinbo's technology in Japan, is used to produce spandex. Has also exceeded 30,000 tons.