The spandex industry in mainland China is poised for increased competition in 2023 due to a substantial expansion of capacity. Despite experiencing a lackluster growth cycle since 2018, the industry saw a surge in demand for pandemic prevention materials in 2021, leading to an increase in profit along the value chain. This resulted in the announcement of several new spandex projects and the subsequent start of production.

The expansion of spandex capacity is expected to peak in 2023, with an estimated growth rate of 18%, the highest since 2009. The capacity of spandex is projected to increase by 507kt/year to 1292.5kt/year, up from 785.5kt at the end of 2018. New units are set to begin production in the first half of 2023, with the biggest quarterly increase in history expected in Q1.

As new units with high efficiency and low cost begin operations, some older spandex units in East China will be eliminated. While the launch of new units will be concentrated in the first half of 2023, some units may be postponed if demand fails to effectively chase up.

The proportion of Midwest China in the spandex market has increased significantly, with the market share of some East China regions declining due to little or no increase in capacity.