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Insight | Time: Jul 4 2019 9:21AM
Analysis on China’s spandex exports in Jan-May, 2019
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According to customs data, China’s spandex exports was 27.1kt in January-May, 2019, with a year-on-year increase of 9.9% or 2,438mt. Average export unit price was at $5.236/kg, significantly declined by $0.437/kg year on year. In May, 2019, China’s spandex exports was 4,610mt, decreased by 21% from last month and 7% from the same period of last year. Average export price was at $5,278/kg in May, with a month-on-month rise of $0.030/kg. As the spandex export tax rebate dropped from 16% to 13% on April 1, tax rebate of domestic spandex export plants fell by 3%. In April-May, domestic spandex export prices were relatively stable, which was contrary to the trend of continuous decline in spandex domestic price in the second quarter.

Turkey remained the largest export destination
Based on the statistics on spandex export destinations in January-May, 2019, Turkey, South Korea, Iran, Pakistan, Bangladesh and Indonesia were main export destinations of China’s spandex. Except for South Korea, Indonesia, Columbia and the US, China’s exports to main export destinations ascended in different degrees. The main export destinations of China’s spandex were concentrated in West Asia, Africa, South Asia and Southeast Asia. Turkey remained the largest export destination of China’s spandex, with spandex export share at above 20%, and exports rose by one third year on year.
Export destination Volume (kg) Share Unit price ($/kg) Y-O-Y change (kg)
Turkey 6,493,701 23.90% 4.423 1,631,353
Egypt 2,159,429 8.00% 4.296 74,850
Vietnam 2,134,493 7.90% 5.343 299,857
South Korea 1,801,433 6.60% 4.835 -201,991
Iran 1,757,851 6.50% 5.456 1,532,067
Pakistan 1,650,053 6.10% 7.643 251,216
Taiwan, China 1,217,128 4.50% 5.557 -928,071
Bangladesh 1,090,614 4.00% 5.344 295,918
Indonesia 754,539 2.80% 4.622 -488,188
Netherlands 665,843 2.50% 6.84 38,547
India 589,627 2.20% 6.188 96,818
Columbia 516,631 1.90% 4.259 -34,883
Japan 504,028 1.90% 6.905 128,607
Brazil 477,807 1.80% 4.734 106,325
the US 476,107 1.80% 5.774 -22,178
Others 4,858,068 17.90% 5.28 -342,380
Total 27,147,351 100% 5.236 2,437,866

In January-May, 2019, China’s spandex exports rose by 9.9% year on year. China’s spandex exports to Turkey was at 6,494mt, up by 1,631mt or above 30% compared with the same period of last year. The monthly average prices were relatively low at $4.2-4.6/kg, and the average unit price of spandex exported to Turkey was at $4.423/kg, down by $0.387/kg from the same period of last year. Resources were mainly from Xinxiang, Huafon, Taekwang and Shuangliang.

The US government announced that tariff rate imposed on $200 billion USD commodity imported from China has increased from 10% to 25% since May 10, including various raw materials (cotton, wool, silk, linen and chemical fibers) of all yarns, fabrics and industrial textiles and some textile machinery products and involving value of exports to the US at $4 billion USD. Spandex was also imposed tariff of 25%. In January-May, 2019, China’s spandex exports to the US was 476mt, decreased by 4.5% compared with the 498mt of the same period of last year. The average unit price was at $5.774/kg, with a y-o-y decrease of $0.872/kg. The procurement was mainly for differentiated spandex of multinational enterprises.

During the first five months of this year, the performance of spandex exported to Iran was dramatic. In January-April, spandex exports to Iran was 1,758mt, obviously rose year on year due to the small number of the same period of last year. However, spandex exports to Iran was zero in May. During the first four months, Iran was a dark horse of China’s spandex exports, and the exports of some domestic spandex plants to Iran obviously ascended through some terms of trade, mostly through ordinary trade. Shipment was from China’s Ningbo port or Shanghai port to Iran’s Abbas port, and most payment was collected through Bank of Kunlun, with ideal price of spandex exported to Iran. Prices were evidently higher than average export unit price of the first four months. Since the beginning of May, 2019, the global trade situation has deteriorated sharply in the escalation of Sino-US conflicts, and global risk aversion increased.
[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
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