SunSirs: Lack of Good Support, Spandex Prices Fell by More Than 25% in the Past 3 Months

Price trend

According to the price monitoring of SunSirs, the domestic spandex market has maintained a decline in the past three months. As of June 28, the average market price of 40D specifications was 42,200 RMB/ton, a decrease of 25.31% and a year-on-year decrease of 43.73%.

Analysis review

The start-up of spandex manufacturers fluctuated down to 70-80%, and some manufacturers reduced production, but the spot supply in the market was still sufficient. Most of the terminal textile enterprises decided production based on sales, which led to high inventory of spandex manufacturers and great resistance to shipment. Most manufacturers destocked by offering a discount and flexibly shipped goods.

Recently, the market price of raw material PTMEG has maintained a weak operation, the cost of BDO has dropped significantly, and the downstream demand for spandex is light. The market price of PTMEG (1800 molecular weight) is 35,000-37,000 RMB/ton. The pure MDI market has a strong center of gravity, and the market reference is 22,500-23,000 RMB/ton for self-pickup.

Downstream end customers followed up cautiously and continued to purchase on demand. The operating rate of Xiaoshan and Shaoxing areas has increased slightly, and the operating level of the circular knitting machine market was maintained at 30-40%; the operating rate of the circular knitting machine in Changshu is not high, and the operating level of the circular knitting machine was maintained at 30-40%; the operating level in Fujian area was average, and the start of lace and warp knitting was in 50-65%; Guangdong area started low and stable, circular knitting, yarn wrapping, warp knitting market started at 35-65%.

Market outlook

SunSirs’ analysts believe that the supporting role of the cost side can still be maintained, but as the temperature rises on the demand side, the textile market has slowly entered the off-season, and the demand will become increasingly weak. Lack of positive support, short-term spandex prices will continue to be weak.

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