While the spandex industry is still debating overcapacity, a set of contrasting data tells a different story: prices for low-end regular yarn keep falling, while orders for fine denier spandex of 20D and below are already booked months in advance. On August 18, Xinxiang Chemical Fiber officially started Phase II of its 100,000-ton functional spandex project in Xinxiang, Henan, with all new capacity dedicated to fine denier products. This move highlights a clear industry divergence—it is not that spandex is struggling, but that ordinary spandex is losing ground.
Background
The Phase II project consists of a main production workshop with an annual capacity of 50,000 tons of spandex, covering a floor area of 65,000 square meters, plus auxiliary production and living facilities. All products will be functional fine denier spandex of 20D and below. The process uses continuous polymerization and dry spinning, with core equipment featuring the world's unique 200-head spinning duct. Process control adopts digital and intelligent technologies, equipped with automatic doffing and smart sorting systems. The power system leverages high-efficiency machine rooms and AI for precise energy distribution. Phase I is progressing smoothly and is expected to be operational by the end of this year.
From a strategic perspective, this is not a simple capacity replication. Deputy General Manager Zhu Shengtao described it as a strategic project for the company's 15th Five-Year Plan, integrating 5G and industrial internet concepts to build a benchmark smart, digital, and energy-efficient factory. For the region, the project will fill gaps in the high-end textile new material supply chain, pushing traditional chemical fiber from scale expansion toward quality and innovation-driven growth.
Industry Impact
The current supply-demand landscape of the spandex industry is undergoing structural reshaping. Low-end capacity is being phased out, while demand for ultra-fine, functional, and green spandex continues to expand, becoming a core need for textile industry upgrades. Downstream sectors such as sportswear, high-end home textiles, and functional intimate apparel are iterating. Fine denier spandex of 20D and below, with its skin-friendly feel, delicate elasticity, and strong adaptability, is gaining market penetration, sustaining high industry prosperity.
This means Xinxiang Chemical Fiber's Phase II project is precisely positioned in the fastest-growing niche. For buyers, supply of high-end fine denier spandex will become more stable, but prices may remain firm in the short term—as new capacity is still ramping up while downstream demand continues to grow. For exporters, the signal is clear: profit margins for regular spandex are narrowing, and shifting to high-value-added products is the way forward.
A deeper impact lies in supply chain transmission. Xinxiang's capacity layout will drive surrounding dyeing, weaving, and garment enterprises to upgrade, potentially amplifying regional industrial cluster synergies. Meanwhile, the introduction of smart production equipment will significantly reduce unit energy consumption and labor costs, creating new space for end-product cost control.