China's spandex exports fell by around 30% or 6,758 tons on an annual basis to 17kt in the first quarter of 2023, according to data from China customs.

The export unit price was also down by $3.999/kg on the year to US$5.193/kg. However, monthly exports of spandex slowly climbed up, increasing noticeably in March after being impacted by the Spring Festival in January and February. Spandex exports in Q1 2023 were far lower than the corresponding period of the previous two years and were similar to those of Q1 2019. The top export destinations for China's spandex were Turkey, Vietnam, South Korea, and Egypt, which accounted for 48.2% of the total. However, Turkey's imports from China decreased by 64% in Q1 2023, whereas Vietnam's imports increased by 89.1%.

On the other hand, imports of spandex to China surged by 86.2% on an annual basis to 9010 tons in Q1 2023, with a significant decline in the import unit price by $5.602/kg to US$5.784/kg on the year. Vietnam, Singapore, and South Korea were major import origins, with Vietnam's imports increasing by 5350 tons in Q1 2023, stimulating spandex imports to hit a five-year high.

The textile and apparel industries' new export orders reduced globally since Q4 2022 due to factors like high inflation outside China and interest rate hikes, affecting Vietnam as well. As a result, Vietnamese fabric mills experienced a sharp drop in orders, and textile and apparel exports decreased.

The local consumption of spandex also declined in Vietnam, with some being exported to China. The Vietnam Textiles and Clothing Association reported that textile and clothing exports reached US$3.298 billion in March 2023, an 18.11% increase from the previous month, but a 12.91% decrease from the same period of last year.

The industry is expected to face difficulties in the second quarter due to a sharp decline in purchasing power in markets such as the US and the EU, resulting in a lack of new orders in April.