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SunSirs: Spandex Continues to Rebound wittout Sufficient Power due to Sliding Demand

December 09 2019 14:49:46     SunSirs (Linda)

According to the price monitoring of SunSirs, the domestic spandex market rebounded in December. As of December 6, the average market price of 40D specification was 31,900RMB/t, with a weekly increase of 1.27% and a year-on-year decrease of 9.07%.

Recent mainstream prices of spandex market (unit: RMB/t)

 

20D

30D

40D

Zhejiang

36,000-38,000

34,000-35,000

28,000-30,000

Shandong

37,000-39,000

35,000-36,000

29,000-30,000

Fujian

37,000-39,000

35,000-36,000

29,000-31,000

Jiangsu

36,000-38,000

34,000-35,000

28,000-32,000

The spandex market fluctuated and suffered losses due to cost pressure. Some factories increased 1,000RMB/t. The overall market atmosphere was relatively strong, and the supply of manufacturers was stable. At present, the mainstream negotiation of 20D spandex in Jiangsu and Zhejiang area is 36,000-38,000RMB/t; the mainstream negotiation of 30D spandex is 34,000-35,000RMB/t; the mainstream negotiation of 40D spandex is 28,000-30,000RMB/t, and the actual transaction volume is discussed.

In terms of the raw material market, PTMEG market is in narrow range arrangement. Under the cost pressure, the factory has a strong price intention, but the downstream market entry enthusiasm is general, and the negotiation is slightly stalemate. In terms of price, the mainstream quotation of 1,800 molecular weight goods source is 15,000-15,500RMB/t, and the actual single negotiation is 14,000-14,800RMB/t. The weak market of pure MDI is lower, the delivery and investment are general, and the suppliers continue to negotiate shipment on the low side. The quotation in North China is 16,500-17,000RMB/t telegraphic transfer barrels, and that in South China is 16,500-16,900RMB/t telegraphic transfer barrels.

Recent changes of PTMEG plants in China

Company

Area

Capacity (10,000 tons/year)

Note

Shanxi Sanwei

Hongdong Shanxi

5

In shutdown, no restart plan

Sichuan Tianhua

Luzhou Sichuan

4.6

In shutdown

Sinopec Great Wall Energy and Chemica

Yinchuan Ningxia

9.2

Two devices operate stabliy with 80% load

Shaanxi Shanhua

Huaxian Shaanxi

4.6

With 80% load

Henan Energy and Chemical

Hebi Henan

6

In shutdown

Xinjiang Blue Ridge Tunhe

Changji Xinjiang

4.6

In shutdown and overhaul

From the demand side, the first week of December was coming to an end. The overall market transaction in the lower reaches has cooled down, and the comprehensive starting rate of Jiangsu and Zhejiang looms has declined, currently around 70%. In autumn and winter, the transaction of clothing fabric is coming to an end. The terminal factory is currently in the process of making foreign Christmas orders. The orders are basically coming to an end, and the orders will be gradually reduced from December. In Xiaoshao area, Zhejiang Province, the downstream terminal market starts generally, the round machine market starts at a level of 40-50%, and the yarn wrapping market starts at a level of 50-60%; in Wujiang area, the downstream market starts at a relatively stable level, and the yarn wrapping starts at a level of 60-70%; in Fujian area, the downstream order follow-up is not much, the lace market starts at a level of 30%, and the warp knitting market starts at a level of about 60%; in Guangdong Province, the downstream market starts at a level of 40-50% The market demand follows up cautiously, the starting level of circular machine is 30-40%, and the starting level of warp knitting is 60-70%.

SunSirs analysts believe that the current spring and summer clothing fabric part of next spring and summer orders issued, but the order volume is not large, product delivery speed is average. In autumn and winter, the clothing fabric goes to the end, but in early winter, the fabric doesn't go smoothly. With the double twelfth and Christmas approaching, late sales may be more smooth. Although the trend of upstream raw material market has a strong price intention, but the support is insufficient. Although spandex manufacturers are actively shipping, the start-up level of various fields of the terminal may have a downward trend. The purchase intention is not high, the shipping resistance remains, and the demand end will gradually weaken. It is expected that the spandex market will continue to be bullish in the short term, and the possibility of low volatility consolidation is greater.

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