Demand fails to turn better as fast as anticipated

Demand fails to turn better as fast as anticipated. Retail sales of apparels, shoes, hats and knitwear were very bad among social consumer goods in 2022 while demand for textiles and apparels is expected to recover in 2023 boosted by bullish macro environment. The new foreign orders should be noted later. The sampling orders for export were scant in Q4 2022. That means the improvement of export orders may take time.

Operating rate of fabric mills apparently ascends this week, with that of circular knitting plants, warp knitting mills, covered yarn plants up to 30-50% or above, which may rise further.  The consumption of spandex may accelerate later if downstream orders chase up smoothly. In addition, the inventory of spandex has been low now. After the stocks of downstream plants reduced and the replenishment for spandex grew, price of spandex may be pushed up.