Spandex market multiend spinning

Spandex market multiend spinning

Spandex market lacks momentum to rise

Source : CCFGroup

In the first half of 2019, spandex price continuously moved down, and the decline of spandex slightly slowed down in the second half of this year. 40D price gradually decreased to near the historical low of the third quarter of 2016. In early December, under the losses pressure, partial spandex prices were adjusted up by 1,000yuan/mt. However, affected by various factors such as inventory reduction and payment collection at the end of the year, spandex market was in the sentiment of stable sales on the whole, while several resources were priced higher by 300-500yuan/mt.

Spandex market multiend spinning

Obvious cost support

From the spandex 40D price index, the current price slightly increased by 700yuan/mt to 28,700yuan/mt compared with the historical low.Spandex market multiend spinning

However, resources that have been stocked for a long term, new products and dumping goods were priced evidently low at around 27,000yuan/mt, and cost of main raw materials for spandex production ascended by above 3,000tyuan/mt from the cost in the third quarter of 2016.

Thus, the increase in spandex 40D price was significantly smaller than that in main raw materials. Old units in the East for 40D production were under the greater cost pressure, while the cash flow loss of 32-end units for 40D production reached a historical high. Spandex market multiend spinning

Nevertheless, domestic 60-end and above units for 40D production were still meagerly profitable. With the development of multi-end spinning units and the capacity growth of newly added multi-end spinning units, the average production cost of industry declined.

Spandex raw materials
40DMMDIPTMEGMain raw material cost
July-1628,00016,30012,60012,762
December-1928,70019,00015,85015,783
Change (yuan/mt)7002,7003,2503,021
Change (%)2.5%16.6%25.8%23.7%

Rigid demand with partial agents preparing inventory

The Sino-US trade relationship slightly eased recently, coupled with the significant decrease in price of raw materials for textile garments in 2019, the sales of downstream weaving plants for preparing stock modestly accelerated. At the end of the year, orders of domestic trade and foreign trade meagerly ascended. Spandex market multiend spinning

In the first half of December, operating rate of downstream weaving plants had no big change, while several units such as air covered yarn units ran at a slightly higher rate. Run rate of downstream weavers is estimated to keep steady in late this month. With the Spring Festival approaching, more and more downstream plants may start to take a holiday after the beginning of January, so the possibility of weakening rigid demand may exist. The condition of preparing inventory of downstream agents and weaving plants should be paid attention in 2020.Spandex market multiend spinning

At the end of the year, spandex downstream weaving plants largely purchased spandex for rigid demand, while agents merely prepared a small amount of inventory of low-price and promoted resources, so the overall preparing inventory sentiment remained cautious. Sellers were active in pressing for payment at the end of this year. However, the difficulty of payment collection was larger compared with the same period of last year, and the progress was relatively slow. Spandex market multiend spinning

The payment collection of several downstream resources may be postponed to before the Spring Festival. At present, downstream weaving plants ran at 30-70%, and the operation rate of air covered yarn was at around 70%. The business of air covered yarn modestly rebounded this week, and the inventory reduction obviously accelerated, with the rising rigid demand for spandex. Spandex market multiend spinning

Run rate of cotton core-spun covered yarn and conventional covered yarn maintained unchanged provisionally. Operating rate of warp knitting kept at around 60-70%, and circular knitting run rate in Jiangsu, Zhejiang and Guangdong is at around 30-50%. Orders for double-faced circular knitting and foreign trade (rib fabric, Koti grain and air layer) slightly ascended, and sales of domestic trade orders for double-faced orders were considerable. Production of single-faced circular knitting continued. Operating rate of lace in Fujian was at 30-40%. Spandex market multiend spinning

Spandex market multiend spinning

Market Outlook   Spandex market multiend spinning

Spandex cost support strengthens. Driven by firm BDO, PTMEG price stabilize, and spandex old units in the middle and the East are under the significant cost pressure. Around the Spring Festival, several units may shut down or cut output.

For demand, the intention of spandex downstream to continuously build inventory is likely to be low, and operating rate of weavers is estimated to decrease further at the end of this month and the beginning of January. Under the losses pressure, spandex price is anticipated to be in stable adjustment. Spandex market multiend spinning

Mainstream resources are sold for payment collection, while several resources that have been stocked for a long term or new products may still be priced low.

Spandex market multiend spinning

Polyester downstream market largely pessimistic, requiring time to improve

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Petrochemical Crude Oil Sanctions 28-12-2019

Petrochemical Crude Oil Sanctions

-OUTLOOK ’20: Asia MEG faces a difficult year as mega projects come on line

Asia’s monoethylene glycol (MEG) market will face a difficult year in 2020 due to peak start-ups of several new mega units while China’s import volumes would fall because of rising local supply.

Rising new capacities with no corresponding strong increase in demand will lead to falling operating rates at plants.

A total of 3.3m tonnes/year of confirmed new MEG capacities in Asia are expected to start up from end-2019 to 2020, which will weigh on a market already plagued by poor margins.

Petrochemical Crude Oil Sanctions

-Lenzing Group Enters Joint Venture for Brazilian Pulp Plant

The dissolving wood pulp facility will produce fiber used for textile production

The Lenzing Group and Duratex are undertaking a joint venture to build a dissolving wood pulp plant in Brazil that will strengthen Lenzing’s production of biobased fibers.

The plant, which will be based in Minas Gerais, near Sao Paulo, Brazil, is expected to start up in the first half of 2022. Petrochemical Crude Oil Sanctions

Lenzing holds the majority ownership at 51 percent, while Duratex, the largest producer of industrial wood panels in the southern hemisphere, has a 49 percent stake.

Petrochemical Crude Oil Sanctions

-Sinopec & LyondellBasell to Form 2nd Chemicals’ JV in China

China Petroleum & Chemical Corporation or Sinopec SNP recently signed a memorandum of understanding with LyondellBasell Industries N.V. LYB to create a new 50-50 joint venture (JV) for developing a new propylene oxide and styrene monomer unit. This is a second such joint venture between the two companies.

The new unit will likely have an annual production capacity of 300 kilo tons of propylene oxide and 600 kilo tons of styrene monomer.

The JV is expected to start the new facility’s construction early next year, which will bring the unit online by 2022. Petrochemical Crude Oil Sanctions

Petrochemical Crude Oil Sanctions

-A Bioplastic Made From Fish Waste

Although fish leather is part of an ancient tradition, especially in East Asia, it has only recently been rediscovered. The advantage of this material is that its mechanical properties are almost identical to those of conventional leather, but the production process can make use of waste from the food industry.

Lucy Hughes, a student at the University of Sussex has recognized fish waste as a sustainable material source, and has invented a process for turning it into an alternative source of plastic, hoping to solve the problem of both single-use plastics and waste streams.Petrochemical Crude Oil Sanctions

Petrochemical Crude Oil Sanctions

-Spandex market lacks momentum to rise

In the first half of 2019, spandex price continuously moved down, and the decline of spandex slightly slowed down in the second half of this year. 40D price gradually decreased to near the historical low of the third quarter of 2016.

In early December, under the losses pressure, partial spandex prices were adjusted up by 1,000yuan/mt.Petrochemical Crude Oil Sanctions

However, affected by various factors such as inventory reduction and payment collection at the end of the year, spandex market was in the sentiment of stable sales on the whole, while several resources were priced higher by 300-500yuan/mt.

Petrochemical Crude Oil Sanctions

-Advantages of liquid hydrogen as a fuel cell fuel

1. In the production of liquid hydrogen, residual CO, CO2 and H2O (moisture) are removed as solid impurities after the PSA.

In the commonly used compressed hydrogen method, however, the residual CO in the hydrogen causes the catalyst on the electrode to be poisoned, which shortens the life of the fuel cell stack.Petrochemical Crude Oil Sanctions

After liquid hydration, the hydrogen entering the stack is cleaner.

Petrochemical Crude Oil Sanctions

-OUTLOOK ’20: Europe fatty acids, fatty alcohols demand diverges on end-market performance

The European fatty acids and fatty alcohols markets face diverging outlooks for 2020.

While fatty acids demand from the automotive industry is expected to remain limited, buying interest for fatty alcohols is set to be stable amid healthy production of surfactants anticipated for 2020.

FATTY ACIDS

Demand from the automotive industry for European fatty acids has slipped throughout 2019, with players expecting buying interest to remain low in 2020.

Fatty acids are a component in polyurethane production, which is then used in car manufacturing.Petrochemical Crude Oil Sanctions

-OUTLOOK ’20: Europe fatty acids, fatty alcohols demand diverges on end-market performance

-January paraxylene ACP fails to settle

Negotiations for the January paraxylene (PX) Asia Contract Price (ACP) have fallen apart because of a wide bid-offer gap.

Japan’s JXTG Nippon Oil & Energy placed its offer at $930/t cfr, while all other sellers offered at $920/t cfr. All the sellers declined to change their offers from initial levels.

January paraxylene ACP fails to settle

-Lenzing number one for sustainable wood procurement

In the Hot Button Report issued by the Canadian non-profit organization Canopy, the Lenzing Group has once again been rated number one in the world, confirming its role as the sustainability trailblazer in the textile industry.

In this widely recognized ranking, Canopy grades the world’s 32 largest producers of wood-based fibers with respect to their success in achieving sustainable wood and pulp sourcing. Petrochemical Crude Oil Sanctions

Wood and the pulp derived from it are the most important raw materials underlying Lenzing’s sustainable production of cellulosic fibres.

Lenzing number one for sustainable wood procurement

Petrochemical Crude Oil Sanctions

Petrochemical Oil Sanctions Polyester 27-12-2019

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