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Analysis and Forecast of China Spandex Industry 2009-2010
China Market Report, Aug 2009, Pages: 25
China's spandex production capacity has been expanded rapidly, from 25.1 thousand tons in 2001 increased to 312.1 thousand tons in 2008, a compound annual growth rate of 43.34%, accounting for 60% of the world total capacity currently. The ratio of annual production to capacity of spandex with price trend has a similar synchronization in recent years, the ratio in 2007 reached 77.48%. Pushed by the high-profit, spandex production capacity in 2007 and 2008 expanded continually, the expansion of supply and global financial crisis have led to price fall greatly from the highest point of 95,000 yuan / ton in 2007 dropped to 40,000 yuan / ton in the early 2009.
The rapid decline in prices has stranded most of capacity expansion plans, if the price below to 55,000 yuan / ton, there will be no further capacity to be released in the future. After the slump in 2008 and 2009, at present the new production capacity is obviously insufficient, the growth of spandex capacity in 2009 and 2010 will fell considerably.
From April to June 2009, the year-on-year growth of China's cumulative production and cumulative apparent consumption of spandex has picked up consecutive for three months, in which output growth turned positive in June to 3.3%, apparent consumption growth from 2.95% in April rose to 12.1% in June 2009
Presently, China's spandex fabric is mainly supplied for export products, but in the domestic market, spandex products such as, swimwear, sportswear, underwear, bra and socks also very popular, while the spandex fibers with functional differentiation of products even have a great sale.
China has 1.3 billion populations, with the development, application and promotion of spandex products and consumer familiar with spandex products, the spandex market will surely be a huge potential market to develop in China.
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