Spandex market demand grew faster than prices higher likelihood

According to the downstream garment enterprise customer requirements fabric enterprise customers , currently very modest profit , mostly below 3% profit margin , for both upstream and downstream bargaining power is weak , business is very difficult, but this part of the business as long as management style sound, cash flow also has some protection , but also can survive. Selection of fabrics for customers to design their own fabric factory, fabric design many successful companies every year, more than 30 % growth, margins remained at about 10% , while the fabric design companies are not the market is facing more than just manufacturing business more difficult situation , long-term losses occur even shut down . The reason lies in the differentiation of corporate profits fabrics fabric companies for the cost side of the bargaining power generally weak , fabric companies can continue to pass the cost depends on the fabric to the downstream enterprise's own mode of operation . According to Zhejiang Shaoxing Bridge , qianqing market reflect the view of the textile industry , textile and apparel orders after the Spring Festival in 2014 and 2014 did not show significant improvement compared , in this context , we expect the operating status of the polarization of textile enterprises will be further intensified.Sellotape

Spandex rapid demand growth , the possibility of greater price increases . Currently the ratio of Spandex fabric ammonia plant has increased from about 2% in 2012 to 4-6 % is expected in 2014 will continue to increase the proportion of spandex to use , but in 2013 the rate of increase is no big . 2013 new warp knitting machines in more than 30 % of these new spandex warp knitting machine will support demand growth in 2014 . According to the web experts predict that consumption growth will spandex above 20 %. The first half of 2014 no new capacity spandex , and fabric companies and distributors do not have much inventory on hand spandex , spandex manufacturers stocks fell after the Spring Festival fast . We judge , tight supply fine denier 20D, 30D product prices more likely .Washi tape


Viscose downstream profitability has not improved. 90% of viscose staple fiber yarn plant downstream for people . Cotton yarn factory unprofitable , for upstream and downstream are basically no bargaining power . The current profit model is to cotton yarn factory prices of viscose staple fiber business , as cotton yarn plant with a half months of inventory, cotton yarn business by doing this part of the inventory to profit. About 10 percent of non-woven viscose staple fiber demand in 2014 to add new non-woven viscose staple fiber production capacity of 55,000 tons of demand , taking into account the uncertainty of production in 2014 is currently only able to put race was Lee 100,000 tons , the proportion of non-woven viscose staple fiber demand will increase .Masking tape


Recommendation: Maintain spandex and viscose staple fiber industry "overweight " rating. Spandex 2014 we expect to remain at least 20 % of the demand growth , the current supply is already tight spandex manufacturers , spandex more likely to follow price increases related companies have benefited Huafeng Spandex, Taihe new material . Currently rayon yarn of viscose staple fiber has not improved corporate earnings , the industry is facing many uncertainties , such as cotton subsidy policy , but the whole industry supply and demand in 2014 will continue to improve , is expected to price reversal will occur during the year , related to benefit the company there Aoyang Technology , the three friends chemicals .

Risk Warning : spandex, viscose staple fiber production accelerated delivery ; garment enterprises demand continues to slump .Wholesale masking tape