Spandex capacity exceeded 1 million tons for the first time

By the end of 2022, the capacity of spandex exceeded 1 million tons to be 1.0965 million tons/year in Chinese mainland, up by 12.9% or 125kt/year on the year. Three companies had new capacity in the first half of 2022, namely Hyosung Ningxia, Huafon Chongqing and Xinxiang Chemical Fiber, with total new capacity at 90kt/year. Four companies had new capacity in the second half of year, namely Tayho Ningxia, Zhuji Huahai, Xinxiang Chemical Fiber and Zhuji Qingrong, with total new capacity at 60kt/year. 25kt/year of capacity was eliminated at the end of 2022. The total increment of capacity was at 35kt/year combined with the new expansion and eliminated capacity in the second half of 2022.

Spandex market saw extreme operation in 2022. New capacity expansion was big. However, some export orders flew to Southeast Asia and South Asia in the second and third quarter. Domestic and export demand was soft in the fourth quarter impacted by the spread of pandemic and the high inflation outside China. Demand for spandex saw a rare negative growth. The operating rate of spandex plants averaged at 76.4% in 2022, down by 18.2 percentage points on the year, with the highest and lowest level at 94% in mid-Mar and 55% in mid-Aug.