Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic spandex market temporarily stabilized this week (July 17-22), with an average price of 33,500 RMB/ton in the 40D market as of July 22, which was unchanged from the beginning of the week. The raw material prices were still at a high level, and the spandex industry was experiencing losses. The operating rate remained low. As of July 20, 2023, the overall industry operating rate of the domestic spandex industry was around 72%.

Analysis review

The focus of the raw material pure MDI market was relatively strong, and there were few spot goods in the market. Additionally, factories had plans to continue reducing production, which limited their ability to add new orders, and their cost support continued to strengthen. The overall operating rate of the PTMEG industry was around 72%. The load of two 46,000 ton/year PTMEG units of Sinopec Great Wall Energy and Chemical in Ningxia was around 90%, and the load of two 30,000 ton/year PTMEG units of Henan Energy and Chemical was around 60%. The mainstream factory's 1,800 molecular weight quotation was around 19,500 RMB/ton, and some factories did not provide external quotations.

Recently, terminal inventory gradually accumulated, and with the high temperature in summer and off-season factors, the workload of most downstream weaving factories was relatively low. As of July 22, there was no substantial improvement in both domestic and export sales of the terminal, and there may be further room for decline in construction.

Market outlook

Analysts from SunSirs believe that as of July 22, the cost side support was still acceptable, but the actual demand side was bearish, the market trading enthusiasm was not good, and the enthusiasm for raw material stocking was average. Under low demand and rising cost pressures, it is expected that the spandex market price will remain mainly on a wait-and-see basis in the short term.

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