The Chinese spandex industry saw a mixed bag in 2023, with exports declining overall but experiencing some bright spots.
Total exports declined by 2 per cent to 69.6kt tons compared to 2022.
One of the major reasons for this decline is a significant drop in export unit price, which fell from $7.698/kg to $5.022/kg, a decrease of $2.676/kg.
Q1 saw the lowest volume of Spandex exports in recent years due to the Spring Festival and weak overseas demand. The depreciating value yuan value and growing demand fuelled the growth of spandex in major exporting them.
Spandex exports hit a five-year high in Q3 due to excess domestic supply and the favorable exchange rate. However, this demand once again declined by 11.4 per cent Y-o-Y in Q4 due to soft demand and the Red Sea tension.
In 2023, Spandex was exported to 110 countries or regions, up from 103 in 2022. Turkey remained the top destination though exports by the country declined by 31.1 per cent.
The reason for the decline in Turkey’s exports was attributed to high inflation in Europe and the US due to geopolitical issues. Spandex exports to other destinations like Taiwan, Brazil and Iran also declined.
To arrest this decline, the Chinese spandex industry needs to adapt to changing market conditions and focus on value-added products to remain competitive in the global market.
