Follow The Spandex Industry Leader Xinxiang Chemical Fiber Increased By 600 Million Expansion

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< p > in 2013, the market of spandex was slightly improved, and manufacturers were unable to resist the impulse of investment.

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< p > > a href= "//www.sjfzxm.com/news/list.aspx ClassID=101112107102" > Xinxiang chemical fiber < /a > December 29th announced that it will raise about 600 million yuan by way of private placement to build 20 thousand tons / year spandex project, so that the total capacity of the company can be increased to 42 thousand tons / year.

Economic news reporters noted that the Huafeng spandex has announced the expansion plan, with an additional capacity of 60 thousand tons / year.

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< p > < strong > the increase is about 600 million, < /strong > /p >

< p > the plan of increasing fixed amount of Xinxiang chemical fiber shows that the company intends to issue no more than 200 million shares to a specific object, and raise funds not exceeding 600 million yuan for the first phase of the 2 * 20 thousand ton / year super soft spandex fiber project, with a total investment of 900 million yuan.

The base price of the fixed increase is 2.63 yuan / share, which is 8.4% lower than its closing price of 2.87 yuan / share before the suspension.

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< p > the product structure of the product is 20D, 30D, 40D, glossy or plucent silk, glossy or matting yarn.

Among them, the 20D product is 4200 tons / year, 30D is 6300 tons / year, 40D is 9500 tons / year, total 20 thousand tons / year.

It is estimated that the construction period will be about one and a half years, and will be completed and put into operation by July 2015.

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< p > economic journalists noted that the existing spandex production capacity of Xinxiang chemical fiber plant is 21 thousand and 500 tons, of which 5500 tons / year is under construction; in the semi annual report of 2013, the company has revealed that the construction project will be completed and put into operation in the year.

If the production capacity is set to expand, the total capacity of Xinxiang chemical fiber will rise to 41 thousand and 500 tons / year by 2015, exceeding that of Taihe new material (002254, closing price 7.74 yuan).

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< p > < strong > the price of spandex will fall down to < /strong > /p >

After the announcement of the Xinxiang P plan, the stock market rose only 1.05% yesterday (December 30th).

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< p > reporter noted that in September this year, another listed company, Huafeng spandex, also introduced a fixed increase plan. The company intends to raise funds not more than 1 billion yuan to expand 60 thousand tons / year differential spandex.

The project is divided into two phases, 30 thousand tons per year, and the first phase is scheduled to be put into operation in December 2014.

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< p > what needs to be explained is that < a href= "//www.sjfzxm.com/news/list.aspx? ClassID=101112107108" > Huafeng spandex < /a > now has 57 thousand tons / year spandex production capacity and is the leading domestic leader.

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After the expansion plan of Xinxiang chemical fiber and Huafeng spandex was released, it is clear that the domestic spandex market will have at least 50 thousand tons of capacity in 2015, which will have a negative impact on the industry.

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< p > data show that in 2010~2013, the new capacity of China's Spandex market is 43 thousand tons / year, 54 thousand and 500 tons / year, 65 thousand and 500 tons / year and 23 thousand tons / year, respectively, indicating that 50 thousand tons are not small.

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< p > in addition, for a cyclical chemical industry, when the price of the product has been rising for quite some time, if many manufacturers have announced the expansion plan, it is almost certain that the price drop is not far away.

In 2011, titanium dioxide, 2013 a href= "//www.sjfzxm.com/news/list.aspx? ClassID=101112107105" > glyphosate < /a > no matter what, spandex also failed to escape this "Curse".

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< p > after more than a year's rise, spandex is now in a state of weakness after entering December.

As in previous years, 20D products fell, and the 40D products which had not been sold well before were also down, and sales were very flat. This had to worry whether the market had come to an end.

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