Price trend

In July, the spandex market generally exhibited a pattern of sideways fluctuation, with prices struggling to move decisively in either direction. According to the SunSirs commodity market analysis system, the price of the 40D specification remained stable at 29,666 RMB/ton by the end of the month.

Market analysis

Spandex manufacturers are strongly inclined to hold firm on prices, yet downstream purchasing remains sluggish. While the industry maintains operating rates in the moderately high range of 81%–83% and keeps finished-product inventories at five-year lows for this time of year—thereby firmly defending price floors—the textile market is currently in its traditional summer off-season. Operating rates for covered yarn and circular knitting sectors in the Jiangsu-Zhejiang region generally hover at only 40%–60%; downstream fabric mills are primarily consuming existing stocks and making only sporadic, essential purchases, with no significant restocking activity to drive spot prices upward.

The supply landscape has improved, underpinned by low inventory levels. Following the sustained elimination of outdated capacity over the past few years, industry concentration in the spandex sector has risen significantly, and leading enterprises possess strong capabilities to stabilize prices by managing supply volumes. In July, industry inventory held steady at 29–30 days—a level low by historical standards for this time of year—indicating little willingness among manufacturers to actively cut prices to move stock, thereby limiting the potential for a sharp price decline.

Upstream raw materials are receiving periodic cost support; with increased maintenance at BDO and PTMEG plants in July, raw material prices have trended upward. This rise in spandex production costs has bolstered spot price quotes and further strengthened the resolve of major manufacturers to maintain price levels.

However, the downstream sector is in its traditional off-season, and end-market orders are insufficient. The seasonal slowdown became pronounced in July; high temperatures hampered weaving operations, while downstream traders and yarn mills prioritized clearing existing inventories and showed little willingness to stock up in bulk. Market activity was limited to essential, immediate needs, lacking the incremental buying interest required to drive up prices.

Market outlook

Looking ahead, the off-season market trend persists, and downstream weaving operating rates are unlikely to see a significant short-term rebound. Market fluctuations will primarily track changes in upstream raw materials such as PTMEG and crude oil. From mid-to-late August, downstream sectors are expected to gradually begin sampling and early restocking for autumn/winter stretch fabrics. Should autumn/winter garment orders materialize steadily and downstream operating rates recover, marginal improvements in demand could drive spandex prices upward again. However, the extent of any price rise depends on the actual realization of end-market orders; if domestic and export orders fall short of expectations, the room for growth will be limited.

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