Price trend

According to the Commodity Market Analysis System of SunSirs, the bearish sentiment in the spandex market had intensified, and the decline in April had significantly expanded. As of April 26th, the average market price of 40D was 35,125 RMB/ton, a decrease of 6.95% compared to early April. From customs data, the cumulative export volume of spandex from January to February was 10,476.82 tons, a decrease of 36.39% compared to the same period last year, a significant year-on-year decline, and the export price weakened.

Analysis review

The production capacity of newly added spandex devices was accelerating, and the industry supply was stable and increasing. On April 25th, Huafeng Chemical announced that the non-public offering and fundraising project of Chongqing Spandex Construction, a subsidiary of the company, has partially completed the construction of a 300,000 ton/year differentiated spandex expansion project, of which 100,000 tons/year have been put into operation and trial run recently. And the workload of the spandex industry remained at a high level. The industry expects the domestic spandex industry's production will reach 225,000 tons in the second quarter, an increase of 15.98% compared to the first quarter and an increase of 6.6% year-on-year in 2022.

Towards the end of the month, there are also replenishment nodes downstream, but overall demand is weak, with the current comprehensive operating rate in the Jiangsu and Zhejiang regions below 55%. Domestic demand remained rigid and there was no large-scale stocking plan. Some factories received samples of autumn and winter fabrics for foreign trade, while small and medium-sized factories still had a shortage of orders. The inventory of warp knitting and circular machine factories has slightly increased. In the upcoming May Day holiday, the textile market will gradually enter the off-season in the second quarter, with increased expectations for holidays and vacations. Weaving enterprises' production enthusiasm is relatively low, and it is expected that spandex factory inventory will face high risks again.

Market outlook

Analysts from SunSirs believe that in the short term, due to the impact of the May Day holiday, downstream weaving factories may have reduced production expectations, and demand will further decrease. Therefore, there is a backlog pressure on spandex factories. With the arrival of the traditional off-season, the weakening of demand is accelerating, and spandex prices will remain weak in the future.

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