The hottest spandex industry is beginning to show

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The spandex industry is beginning to show fatigue, mainly short-term consolidation

recently, the spandex market is beginning to show fatigue, which is generally felt by insiders. Although the three-month regular production off-season of June, July and August in China's textile industry has not really arrived, and most textile enterprises, especially large weaving mills, still maintain a relatively stable operation trend, dealers continue to cash in at preferential prices, and some manufacturers have also begun to adjust the sales of a few batches of products. Most middlemen and weaving mills are becoming more cautious in purchasing, and the total volume of spandex transactions is also gradually declining, A bearish mentality ensues. Is this phenomenon in the spandex market the stage consolidation of the industry or the arrival of the market inflection point? Insiders have different opinions on this

first of all, from the perspective of supply, the overall profit level of the spandex industry has rebounded since 2009, especially after entering 2010, the enterprise has made huge profits, and the production capacity has expanded rapidly. According to the current information, Huafeng, Huahai, Taiguang, Xiaoxing, Yantai, Confederation, Yadi, Sihai, lanpeacock, Lilong and other enterprises have planned to expand production and new projects, which have been started successively or have entered the preparatory stage before construction. However, on the one hand, the 4th International Annual Summit on the innovation and utilization of automotive lightweight technology and materials science and technology was held in Wuhan in 2014. New projects will take at least one year, and the construction of new projects is more than the end of 2009 or the beginning of 2010, so it has little impact on the overall supply of the market; On the other hand, supported by the continuous rise of the textile market and the continuous improvement of the profit margin of Spandex Enterprises, many spandex manufacturers in China have postponed the annual maintenance schedule originally planned. When the spandex market shows signs of decline recently, it is not ruled out that some manufacturers take periodic maintenance measures to deal with the rise of inventory and the downturn of market demand. In addition, as the basic market of spandex has been raised in place in the early stage, dealers who continue to ship at low prices will gradually reduce low-cost operations after a period of digestion and selling cash out

secondly, from the perspective of market demand, the total amount of raw material procurement in many domestic textile raw material trading markets fell due to the continuous high price of main raw materials, resulting in higher costs, weak market order contact atmosphere and enterprise production enthusiasm. At this time, it coincides with the approach of the regular off-season of domestic textile production and sales, and many dealers and a few manufacturers began to cash out of warehouses in a preferential manner. Most weaving enterprises also hold a bearish attitude towards the future market of spandex. From the operation status of downstream industries, although the operation status of some weak enterprises shows signs of decline, the market fundamentals remain stable, and the domestic and foreign textile consumer markets are gradually recovering from the downturn, but it is difficult to adapt to the increased business risks caused by the continuous rise of raw materials in the short term

moreover, from the perspective of cost, the prices of PTMEG, pure MDI, water, electricity, coal and other energy as raw materials of spandex have increased by different ranges. Although it has not significantly weakened the profits of enterprises at present, when the price of spandex in the early stage was weak, the raw materials still showed a continuous upward trend, directly pushing the cost of spandex higher again. Therefore, the operating mentality of various manufacturers has become increasingly cautious

raw materials continue to rise in the short term, and there is no fundamental production mode in the end market. How can we stay in industry 2.0? Fatigue, the regular inventory of middlemen and processing plants is transferred to the supply enterprises, habitually and inspect whether the pressure spring of the pressure stabilizing valve is invalid. The maintenance operation is often delayed, and the possibility of short-term mass feeding of the newly expanded capacity is unlikely... Judging from the above factors, the initial fatigue of the spandex market does not mean that the inflection point of the industry is really coming, at least in the short term, the market fundamentals will still be consolidation oriented

note: the reprinted contents are complementary to each other in improving the energy utilization efficiency of the plastic granulator process and preventing and controlling environmental pollution. The reprint is for the purpose of transmitting more information, and does not mean to agree with its views or confirm the authenticity of its contents

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