Higher sea freight and weaker demand causes falling spunlace nonwovens export in Apr

According to customs data, the export of spunlace nonwovens in Apr 2024 increased by 10% year on year but decreased by 7% month on month to 32.306kt. The average price was $2,302/mt, a year-on-year decrease of 5% and a month-on-month decline of 3%. Although the export volume in Apr is still growing on yearly basis, it starts to weaken on monthly basis.

In Apr 2024, the export volume of spunlace nonwovens to the five major destinations (the Republic of Korea, the United States, Japan, Vietnam, and Brazil) reached 17.345kt, a year-on-year increase of 8%, accounting for 54% of the total export volume. The export to the Republic of Korea advanced on monthly basis, while that to the other regions generally declined. The export was blocked by the soaring sea freight. In the case of just breaking even, it is hard for the exporters to afford high shipping costs.

In Apr, the main origins for spunlace nonwovens (Zhejiang, Shandong, Jiangsu, Guangdong, and Fujian) had an export volume of 27.23kt, a year-on-year increase of 9%, accounting for 84% of the total export volume.The export from major origins generally saw month-on-month decline in Apr.

The export volume of spunlace nonwovens in Apr witnesses a year-on-year increase but a month-on-month decline, which is mainly caused by two factors. First, with the significant rise in the sea freight and shortage of containers, fabric mills could not afford higher transportation costs by just breaking even, thus the orders are not placed decisively. Second, the demand also weakens slightly. Therefore, the export in May is still expected to drop further.