SunSirs: Supply and Demand Had No Positive Support, and Spandex Prices Remained Weak

Price trend

According to the monitoring of SunSirs, the domestic spandex market has maintained a slight decline since January. As of January 18, the average market price was 35,125 RMB/ton, down 0.71% from the beginning of the month, and down 41.07% year on year.

Analysis review

The operating rate of spandex production enterprises was low to around 60%, and the production capacity was weakened. With the downstream Spring Festival holiday, the demand was weak, and the resistance of spandex manufacturers to shipment was significantly increased, and some factories had inventory pressure.

The PTMEG market was operating at a very high price, and the trend of raw material BDO continued to rise, with strong support. There was positive support at the cost side, but due to the holiday, the demand for downstream spandex was slightly weak. As of January 18, the negotiated price of PTMEG factory was 18,000-19,000 RMB/ton. The supply of pure MDI market was tight, and suppliers were reluctant to sell and bullish. The market reference was 17,200-17,600 RMB/ton of barreled self-delivery.

Downstream textile terminal factories have been in the Spring Festival holiday, and have entered the stage of centralized production suspension and holiday. They have carefully followed up the purchase of raw materials. The overall market transaction is rare, and the trading atmosphere is hard to say optimistic. The operating rate remained at a low level, with 20% in the downstream circular machine field and 30-40% in the warp knitting field.

Market outlook

Analysts from SunSirs believe that the supply and demand sides of spandex are not supported by favorable conditions, and the spandex manufacturers make profits-cutting to ship goods, and the overall market transaction is rare. However, the cost side support is acceptable, and it is expected that the spandex market will be stable in the short term.

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