Could spunlace nonwovens market see recovery in 2024?

Spunlace nonwovens market in 2023 showed a fluctuating downward trend, with prices being greatly influenced by the volatility in raw materials and consumer confidence. The price of 100% viscose cross-lapping nonwovens started the year at 18,900yuan/mt, and rose to 19,100yuan/mt due to rising raw material prices and economic recovery expectations, but then fell against the backdrop of consumer underperformance and declining feedstock prices. The price rebounded around the Nov 11 shopping gala, but kept falling to 17,600yuan/mt when there was shortage of orders and fierce completion among the enterprises at the end of year.

China's spunlace non-woven fabrics were exported to 166 countries (regions) in 2023, totaling 364.05kt, a year on year increase of 21%. The top seven major export destinations in 2023 remained the same as 2022, namely South Korea, Japan, the United States, Vietnam, Brazil, Indonesia and Mexico. These seven regions accounted for 62% of the market share, a year-on-year decrease of 5%. The export to Vietnam has declined somehow, but other regions have seen an increase in export volume.

There has been a relatively significant increase in both domestic sales and foreign trade in 2023, especially in terms of exports. In China local market, the main application of spunlace nonwovens was in consumer wiping products, mainly wet wipes. However, with the decline in China's birth rate and the high market share of wet wipes, the market share has declined. On the other hand, the consumption of upgraded rigidly needed products such as dry wipes and flushable wet wipes (mainly wet toilet paper) has increased.

The capacity and output of spunlace nonwovens in 2024 is expected to increase slightly. The increment in demand will be contributed by both Chinese and overseas markets, and the segments are expected to be in flushable wipes, face towels and kitchen wipes. The price may fluctuate amid wide range in line with raw materials, and the profitability may improve in 2024.