Downstream Fast Recovery Of Spandex Is Expected To Exceed Expected Growth

On the one hand is the rapid recovery of the downstream market demand of spandex, on the other hand, the limited growth of spandex production capacity in the short term is expected to make the annual growth of spandex listed companies exceed expected growth.

Recently, a number of agencies have concentrated on the investigation of two spandex listed companies, namely Huafeng spandex and Taihe new material.

According to introduction,

It is a kind of elastic fiber, and 70% of its capacity is in China.

In recent years, the demand for spandex has increased rapidly. Especially after 2000, domestic spandex has a relatively fast growth, except for 2011, the annual growth rate is more than two digits.

As one of the largest spandex fiber manufacturing enterprises in China, the annual production capacity of Huafeng spandex has reached 57 thousand tons as of the end of 2012.

According to the company's three quarterly report in 2013, it is expected that the net profit of 2013 is 250 million yuan to 310 million yuan. The increase of 1258.5% to 1584.5%. is mainly due to the significant increase in the price of the product, the company's full load, the increase of production, the decrease of the cost, and the improvement of the product's profit.

This month, a number of institutions including China Ping An, Fu Guo fund and China Post Fund have concentrated on the investigation of Huafeng spandex.

Since the second half of the year, spandex industry has been rapidly warming, resulting in spandex.

Nervous, and raised prices several times in the off-season.

On the other hand, the company's product output has been greatly improved due to the construction project's production, technological pformation and product structure adjustment. The company maintains full load at present, and its production and sales rate is close to 100%.. Analysts say that under the background of the volume and price rise, Huafeng spandex's performance in the four quarter and the whole year is expected to exceed expected growth.

According to the company's introduction, from the downstream market situation of spandex, the growth mainly comes from two aspects: one is the increase of the proportion of spandex in the traditional spandex application field; the two is the emergence of new application fields, such as high resilience home textiles, diapers, medical bandages and so on, from the traditional clothing fabric field to home textiles, medical, health care and other fields.

Although entering the September, due to the decline of polyester and other bulk chemical fiber products prices, some downstream customers' wait-and-see mood has increased, and the price increases in the peak season are different from the market expectations, but it does not affect the market structure of spandex tight supply.

Inventory, since the second half of this year as the market has obviously recovered, the company's inventory progress is very fast.

According to the company's disclosure, the company's inventory is kept at around 10 days. Taking into account the inventory factors in the first half of the year, it is estimated that the annual sales volume will exceed the output.

Taihe new material is similar.

Recently, the company's research records revealed that many organizations such as Nomura international and baring assets concentrated on the production and marketing of the company recently.

According to Taihe new material, the basic supply and demand pattern of spandex is clear, and it is expected that the demand will reach more than 10% next year.

From the supply point of view, there will be basically no capacity in the first half of next year. In the second half of the year, there are roughly 3-6 tons of new capacity, so the first half of next year should be in short supply.

According to convention, spring's peak season is usually a tentative price increase.