SunSirs: The Wait-and-See Sentiment in the Market Was Strong, and Spandex Prices Were Temporarily Stable

Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic spandex market temporarily stabilized, with an average market price of 33,625 RMB/ton as of August 23 for 40D spandex. The prices of raw materials were firm, and downstream followed up on dips according to demand. The load of the spandex factory remained around 70%.

Analysis review

In the raw material market, some imported goods in the pure MDI market arrived at the port, but overall spot was still tight, and traders increased their enthusiasm for shipping. As of August 23, there were a small number of spot prices in the market that were negotiated for 22,500-23,000 RMB/ton for self delivered. The domestic PTMEG mainstream factory's 1,800 molecular weight quotation was 20,000 RMB/ton, and some factories did not provide external quotations for the time being. The overall operating rate of the industry was 73%.

At the end of August, the situation of new orders for winter insulation fabrics in the factory had slightly rebounded, and the atmosphere for domestic winter textile and clothing inquiries had warmed up, with an increase in order placement compared to before. However, the downstream construction was limited by the impact of production profits and new orders, and the increase in load was relatively cautious in raw material procurement, with a focus on just in needed. Considering the significant decline in terminal textile and clothing exports, China's textile and clothing exports experienced another decline in July, with a year-on-year decrease of 18.3% in US dollars.

Market outlook

Analysts from SunSirs believe that the spandex market had a strong wait-and-see sentiment, cost pressure remained, downstream demand was average, d orders for end consumer goods reduced, and the textile exports continued to contract. It is expected that the price of spandex will remain stable in the short term.

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