Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic spandex market had slightly increased since August, with an average market price of 40D at 33,625 RMB/ton as of August 11th, an increase of 0.37% compared to the beginning of the month. The prices of raw materials were constantly rising, and the cost pressure on spandex factories was increasing. As of August 11th, the overall domestic spandex industry was operating at around 72%, and downstream procurement was mainly cautious.

Analysis review

The pure MDI market in the East China region was temporarily stable, with a small amount of spot goods negotiated at 22,500-23,000 RMB/ton ( in barrels and self delivered). Spot goods were scarce, and a small number of holders were mainly reluctant to sell. The overall operating rate of the PTMEG industry had slightly decreased to around 73%, with the load of two sets of 30,000 ton/year PTMEG devices in Henan Nenghua being around 60%; The annual maintenance of the 46,000 ton/year PTMEG device in Lanshantunhe, Xinjiang from July 30th to August 30th; The load of the 46,000 ton/year PTMEG unit in Yanchang Petroleum was 40%. PTMEG's mainstream factory's 1800 molecular weight quotation was referenced at 20,000 RMB/ton, and some factories did not provide external quotations for the time being.

In early August, factors such as high temperature electricity restrictions and the Asian Games had not yet suppressed weaving enterprises, and some factories had increased their willingness to stock up. Based on expectations of peak season demand, inventory preparation was still being carried out by downstream, with the most obvious performance being the preparation of autumn and winter clothing fabrics. The operating rate of Jiangsu and Zhejiang weaving machines remained above 60%, but the upward trend was weak. New orders had not shown much improvement and were still at a low level. In addition, the weakness of foreign trade had also had a significant impact.

Market outlook

Analysts from SunSirs believe that costs continued to strengthen, and spandex factories were under pressure to raise prices. As of August 11th, orders for terminal consumer goods decreased, and textile exports continued to contract. Downstream textile factories and distributors followed up on demand for raw materials, and if subsequent orders improve, restocking demand may support spandex prices. It is expected that in the short term, the price of spandex will mainly be stable and stronger supported by favorable costs.

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