Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic spandex market has been fluctuating and declining since March. As of April 13, the average ex factory price of 40D was 35,375 RMB/ton, a decrease of 9.58% compared to early March and a return to the level at the beginning of the year. Downstream purchasing enthusiasm was average, and spandex manufacturers sold at a profit-cutting. Some manufacturers had accumulated inventory, and the actual transaction was discussed separately.

Analysis review

From the annual comparison chart of spandex prices in SunSirs, it can be seen that spandex prices were at a low level in the past two years. Insufficient demand was the main reason for the weakening of the spandex market.

Since April, downstream textile clusters in various regions of China have experienced a rapid and concentrated decline in production. The comprehensive production rate of chemical fiber weaving in the Jiangsu and Zhejiang regions was only around 55%, a decrease of 7.54% compared to the beginning of the month. This year, most textile factories are more cautious in purchasing spandex. Without a significant improvement in orders, they are unwilling to pile up excessive funds on raw materials and adopt on-demand purchasing, on-demand use, and rigid restocking as the main approach.

Meanwhile, the pattern of weak foreign demand had not changed. According to data from the General Administration of Customs, from January to February 2023, textile and clothing exports amounted to 40.84 billion US dollars, a year-on-year decrease of 18.6%. Among them, textile exports amounted to 19.16 billion US dollars, a year-on-year decrease of 22.4%, and clothing and clothing exports amounted to 21.68 billion US dollars, a year-on-year decrease of 14.7%.

Market outlook

Analysts from SunSirs believe that the follow-up of new orders in terminal demand was insufficient, especially with a significant decline in foreign trade orders. Downstream load reduction had accelerated, and wait-and-see sentiment was constantly showing, dragging down the price of spandex. In the absence of any improvement in new orders, it is expected that the price of spandex will continue to be weaker.

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