Spandex can be said to be the “tyrant” in the raw material industry. It either does not rise or rises by 500 or 1,000 yuan. There are even cases where spandex has increased by 3,000 yuan/ton within a month. Recently, due to cost pressure, spandex manufacturers have raised prices one after another, mostly by 1,500 yuan/ton.
With cost support and demand recovering, the spandex market is approaching the break-even line and rising
It can be seen from the price increase notice that this time Mainstream factories still attribute the reason for the increase to “increasing production costs.” It is understood that the fundamental reason for this price increase is the stabilization of several major raw materials for spandex. Since August, the strength of crude oil on the cost side has had a negative impact on the cost of spandex raw materials and the In addition, stimulated by the increase in main raw materials such as polyester this month, many dealers and weaving factories have successively launched replenishment, causing most manufacturers in the spandex supply field to shrink their supply due to the recent rapid increase in shipments.
However, some market participants said: On the 17th, spandex companies in many places in Jiangsu and Zhejiang collectively raised their quotations. Although there is still production after this increase, Rising costs are factors, but at the same time, due to the impact of the epidemic this year, companies in the spandex industry have reduced production and suspended production. The current rebound in industry demand has led to inventory compression, and the periodic improvement in downstream orders in August also has a positive impact on this time. The price increase has had some impact.
Generally speaking, the recent operation of various downstream areas of spandex is relatively good and stable. Circular knitting machines companies in Yiwu and Zhuji areas have slightly increased purchases, which has successfully alleviated some cost pressures. Some follow-up orders have gradually been placed, resulting in increased purchases of spandex. Affected by the low price of raw materials, manufacturers in the same Wujiang area followed up on dips. The overall order volume in Jiangsu and Zhejiang has rebounded since August, which has prompted the overall state of business operations to gradually pick up. The entire industry relies on strong enterprises to stabilize operations and start operations. Downstream customers and dealers have seen a slight dip in sales and increased follow-up. The start-up focus of various fields of terminal textiles is slightly better. , 30% to 60% of circular knitted lace is not velvet, and 50% to 70% of woven yarn-covered warp knitted cotton bags; therefore, it can be expected that the spandex industry chain will see a recovery in production and sales, and the spandex market price is below the break-even line A tentative rise is also inevitable.
The downstream burden reduction situation remains the same, and the sustainability of the spandex price increase is questionable
The spandex price increase this time It can be said to be a “helpless” move. The price increase can be decided by the spandex manufacturers, but whether the price increase momentum can be maintained or even continued depends on downstream demand! A spandex manufacturer said that this price increase is also affected by the continued rise in raw materials. Therefore, in order to maintain basic profits, the price can only be raised. However, the specific negotiated price must be determined based on actual demand. The situation of having a price but no market is not what we want. What I want to see is that whether prices can continue to rise in the future will still depend on downstream demand.
For now, the downstream weaving market is experiencing a period of improvement, but the sustainability still remains to be seen. It is understood that the current market is polarized and the contrast is large. . Some market participants are still pessimistic about the future market, believing that some companies have chosen to advance the stocking time of raw materials to create a “time difference” in order to reduce production costs. Although the order volume is currently recovering, the overall volume is not very large. In addition, some of the products are market goods in the domestic market. They come and go quickly, making it difficult to have long-term sustainability. In addition, the overseas epidemic has not subsided, the market lacks confidence, and weaving companies have accelerated their operations to reduce burdens and production.
In the summer of previous years, many textile factories would have corresponding holiday measures due to power cuts or high temperatures. This year’s textile market has been in a state of “not prosperous in the peak season and very weak in the off-season.” , the production load of weaving manufacturers has decreased by 10-20% compared with the same period last year, but this has not reduced the gray fabric inventory of gray fabric manufacturers. On the contrary, during the off-season of June and July, manufacturers have been in the inventory accumulation stage. Therefore, when the high temperature is approaching, Many manufacturers give workers holidays or rotational holidays based on actual conditions.
So from the current point of view, no matter from the raw material market, downstream fields or market mentality, the tentative price increase of spandex is still questionable. Although the current market mentality has been divided, theThere are different opinions on the market outlook, but it will definitely experience a more difficult long-short game. Therefore, nothing is absolute, and market competition and reversal are sometimes very subtle. I remind you that you should pay attention to objective and rational analysis, maintain a good mentality, and make prudent decisions. </p
