The demand for spandex, a functional fiber known for its strength and elasticity and widely used in clothing such as hiking apparel and leggings, is showing signs of recovery. This has led to Hyosung TNC’s spandex facilities operating at over 90% capacity.

Industry sources reported on Jan. 2 that the operation rate of Hyosung TNC’s spandex production facilities had exceeded 90% by the end of the last year. This increase in production is attributed to the rising demand for spandex in China, the world’s largest exporter of petrochemical products. From January to October last year, China’s demand for spandex rose by 13.4% to 690,000 tonnes compared to the same period the previous year. With a decline in self-sufficiency for spandex products in China, its import volume increased by 88.1% while exports decreased by 2.7% over the same period.

The oligopolization of the spandex industry is seen as favorable for Hyosung TNC, the global leader in market share. With lower competitiveness, small and medium-sized companies are shutting down their spandex facilities. The number of spandex producers in China has been decreasing, dropping from 22 in 2015 to 13 in 2021, and further to 11 last year, with four ceasing production by the end of last month. China’s chemical industry magazine CCF Group predicts that two more companies will stop spandex production this month and others will reduce their operation rates.

The closure and shutdown of small and medium-sized companies in China are attributed to intensified competition and oversupply in the spandex industry since 2020. Additionally, the supply of polytetramethylene ether glycol (PTMG), a key raw material, has been unstable, leading to higher raw material costs, forcing smaller companies into production halts.

In contrast, Hyosung TNC continues to strengthen its market competitiveness through the internalization of PTMG and premiumization of its products. The company has completed a PTMG production facility in Vietnam, with an investment of US$53 million last year. It is also targeting the market with products like Creora Bio-based, made from corn-derived materials, and Creora Fresh, which eliminates sweat odors.
 

Source: Business Korea