According to SunSirs price monitoring, the domestic market price of spandex fell first and then rose in August. As of August 27, the average price of spandex 40D was 31,800 yuan/ton, up 2.25% from the beginning of the month and down 0.31% year-on-year. Spandex manufacturers started about 80%, still maintaining a high level. In the second half of the month, as the price of raw materials continued to rise and the downstream market was full of replenishment sentiment, the price of spandex rebounded slightly.

Installation status of domestic PTMEG manufacturers

The raw material PTMEG market is consolidating. At the end of the month, suppliers have a strong intention to explore. In terms of prices, the mainstream price of 1800 molecular weight sources is 14,000-15,000 yuan/ton, and the actual order negotiation is 13,700-14,000 yuan/ton. In terms of equipment, the 50,000 tons of Shanxi Sanwei, 40,000 tons of Yizheng Dalian, and 60,000 tons of Henan Nenghua are still in shutdown, and there is no restart plan. 92,000 tons of Sinopec Great Wall Energy and Chemical, 46,000 tons of Shanhua Chemical, and 50,000 tons of Xinjiang Meike’s installations are not high. The 46,000 tons of Lanshan Tunhe installation in Xinjiang was overhauled on July 25. The PTMEG industry is currently in shutdown. Be cautious about starting work.

August domestic pure MDI market price statistics

In the pure MDI market, since July, many companies such as Wanhua Chemical, Covestro, BASF and other companies have announced the shutdown of their installations. The cumulative MDI production capacity is affected by 1.1 million tons per year, accounting for 12.4% of the global total production capacity. Under the shrinking supply, domestic and foreign factories have raised prices. Among them, the world's largest MDI producer Wanhua Chemical announced that the listing price of pure MDI in September 2020 will be 18,000 yuan/ton, an increase of 1,000 yuan/ton from August 2020. BASF also announced that starting from September 1, 2020 or the time allowed by the contract, it will increase the price of all Lupranate MDI products by an increase of $0.12 per pound. The domestic market price has risen sharply. As of August 27, the market price was 15,300-15,700 yuan/ton, an increase of 2,000-2,200 yuan/ton from the beginning of the month. Suppliers controlled shipments, and the market continued to rise. The offer continued to deliver.

In August, some fabrics in the downstream were slightly active, among which, the start of circular knitting saw a slight increase and remained above 40%. At present, Haining area is still able to start work, and the warp knitting market start level is maintained at 60%-70%; Zhangjiagang area started slightly better, orders are slightly followed up, and the package yarn start level is maintained at 60%-70%; the overall market start in Fujian is average. Lace is maintained at 30%-40%, and warp knitting is at 60%-70%; the operation in Guangdong is stable, and the market for circular knitting and warp knitting is maintained at 5-8%. The traditional peak season of "Golden Nine and Silver Ten" is coming soon, the traditional market has picked up, and overall orders have been increasing month-on-month. The sales in summer thin fabrics continued to decline, the proofing of autumn and winter fabrics continued to increase slightly, and orders increased partially. Both domestic trade orders and foreign trade orders have improved, and orders from Europe and the Middle East still account for a relatively large proportion of foreign trade orders.

From an industry perspective, textile and apparel retail sales in July reached 88.9 billion yuan, a decrease of 2.5% compared with the same period last year. From January to July, the total retail sales of textiles and garments nationwide exceeded 595.9 billion yuan, a year-on-year decrease of 17.5%. In terms of exports, according to the latest statistics from the General Administration of Customs of China, in July 2020, my country's textile and apparel exports were US$31.294 billion, an increase of 7.79% from the previous month. Among them, the export value of textiles (including textile yarns, fabrics and products) was 15.976.9 billion US dollars, down 1.11% from the previous month; the export value of clothing (including clothing and clothing accessories) was 15.317.5 million US dollars, an increase of 18.97% from the previous month. From January to July, my country’s cumulative export value of textiles and clothing was US$156.482 billion, a year-on-year increase of 5.57%. The cumulative export value of textiles was US$90.804 billion, a year-on-year increase of 31.25%; the cumulative export value of clothing was US$66.402 billion, a year-on-year decrease of 16.58%.
SunSirs analysts believe that spandex manufacturers have shipped better than last month, the inventory pressure has eased, and some supplies are slightly tight. The rising atmosphere in the upstream raw material market still exists, and cost support has increased. Some middlemen and downstream customers mostly replenish goods, and the actual demand in the terminal market is slightly cautious. The market is cautious and wait-and-see attitude towards the market outlook. It is believed that with the advent of the textile peak season, the spandex market is expected to remain warm in the short term.

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