Meltblown cloth prices fall, market rectification

By Scott Chin • 06/3 @ 7:09 • 6,081 Comments

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Meltblown cloth prices fall from RMB18,000 to RMB520,000, from RMB150,000 to RMB700,000, and from RMB700,000 to RMB300,000 …

Meltblown cloth prices fall RMB400,000

On April 23, a number of non-woven fabric production and operation enterprises in Yangzhong city of China said that the price of meltblown cloth had already started to fall, from the highest price of RMB700,000 to about RMB300,000, and many manufacturers could not sell meltblown cloth.

The head of a non-woven fabric enterprise in China Yangzhong Economic Development Zone said that the price of 80-85 grade meltblown fabrics is currently around 300,000 tons, a large drop and will continue to drop. “Meltblown fabrics from a manufacturer in upstream in Zhejiang are of good quality, ranging from Grade 80 to 85. Last week, there were more than RMB400,000 per ton, RMB390,000 the day before yesterday, RMB350,000 yesterday and RMB310,000 today.” He said. The above-mentioned person-in-charge connected with several upstream production enterprises and downstream demand customers. According to the description, The quality of meltblown fabrics varies on the market. At the beginning of April, no matter what quality level, it can be sold to more than 500,000. Now the poor quality goods are no longer available.

The head of a non-woven fabric factory in Xinba Town of Yangzhong City also said that the price of a ton of meltblown cloth prices fall was generally around RMB430,000 before April 17. They quoted RMB390,000 on April 17 and dropped to RMB 320,000 on April 23.

From February till now, the price of meltblown cloth has changed like a roller coaster:

Before the COVID-19 outbreak, the price of meltblown cloth was about RMB18,000/ton.

On February 28, individual middlemen bid RMB290,000/ton.

On March 7, the spot supply of meltblown cloth was RMB520,000/ton.

On March 28, meltblown cloth prices fall to about RMB150,000/ton.

On April 8, meltblown cloth began to rebound to RMB500,000/ton.

On April 16, meltblown cloth prices continued to rise up to RMB700,000/ton.

On April 23, meltblown cloth prices fall RMB400,000, about RMB300,000 a ton.

Meltblown cloth is no longer available

“Including producers and middlemen, at least 20 people came to me these days and said meltblown cloth could not be sold out. Let me think of some ways to find resources. At present, there are still people in the market who want meltblown fabrics with guaranteed quality, and those with poor quality cannot be sold.” The head of a non-woven fabric enterprise said. A lot meltblown fabric manufacturer bought the “Old Machine” and began to produce it. The quality did not pass muster. Now no one wants the goods. Many middlemen accept cloth of any quality and can’t get out now.

The head of a non-woven fabric factory in Xinba Town also said that recently the downstream mask factory has higher quality requirements and less demand for meltblown fabrics. The meltblown fabrics they produce have no inspection report and have to reduce prices.

According to an official of a non-woven fabric enterprise, meltblown cloth prices fall is due to the fact that there are too many small factories that produce meltblown cloth, with serious overcapacity. At the same time, more and more small factories that produce masks are closed down, and the demand for those “unbranded and dateless product by a nameless factory” meltblown cloth is greatly reduced. “There are too many people who cannot sell meltblown cloth. They are all panicked, so the price is very easy to drive down now, it can reach over 200,000 yuan, and the price has been dropping. It is estimated that 200,000 yuan can be received casually in two days.” He said.

Recently, some people in the industry analyzed that the price of meltblown cloth is opposite to that of masks, because the higher the price of meltblown cloth, the greater the demand for masks in China and the more mask factories there are, the lower the price of masks will be. Now there are fewer mask factories and less demand for meltblown cloth, but China meltblown fabric market reaction was delayed, and a large number of manufacturers still produced it. In the end, the result of oversupply is meltblown cloth prices fall.

The country cracks down on the reselling of meltblown fabrics

In addition to the closure of small mask factories and the excess capacity of meltblown fabrics, the China departments regions have cracked down on the market chaos of meltblown fabrics, which is also one of the reasons why meltblown cloth prices fall.

On April 17, relevant Chinese state departments released news that in response to the increase in criminal activities of reselling meltblown cloth, the core raw material for manufacturing masks, 20 cases have been uncovered recently, with 42 suspects arrested, involving a total amount of 34.45 million yuan, which has effectively deterred criminal activities of driving up the price of meltblown cloth and effectively curbed the momentum of disorderly price increases of meltblown cloth. On the same day, Yangzhong City of CHINA implemented “shock therapy” for melt-blown cloth industry, and 867 melt-blown cloth enterprises were all shut down.

In addition, on April 18, the China People’s Daily published an article entitled “Meltblown Cloth Digging for Gold: Those Who Make National Treasures Will Be Severely Punished,” which showed that Chinese government have zero tolerance for the crime of hoarding and hype meltblown cloth. From pushing up the price of masks to stir-frying meltblown cloths, the Chinese political and legal departments have always insisted on strict law enforcement and timely investigation of unscrupulous profiteers who have caused interference and damage to disaster relief and epidemic prevention work. They will never spare or relent.On April 21, the People’s Court also published an article saying that it would crack down on criminals who bid up the price of meltblown cloth.

Therefore, Chinese government from state department to the local department, from the People’s Daily to the People’s Court, the trend of the state to control meltblown cloth and crack down on price gouging is very obvious. Perhaps from this stage on, the price of meltblown cloth will continue to decrease. A group of speculative meltblown cloth producers and operators may already be considering whether to sell their stocks at low prices.

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