SunSirs: Weighed Down by Sluggish Demand, Spandex Prices Underwent High-Level Adjustments in June

In June, the domestic spandex market traded sideways at a high level, failing to sustain the upward trend seen earlier in the year. According to the SunSirs commodity market analysis system, the domestic price of mainstream 40D spandex stood at 29,666 RMB/ton at the end of the month, down 0.56% from the beginning of the month.

On the supply side, a price floor is supported by factors such as concentrated industry-wide maintenance and temporary load reductions at older production facilities during the first half of the year. With inventories at major manufacturers remaining low and no new capacity coming online this year, leading enterprises are strongly inclined to maintain price levels, thereby limiting the potential for a sharp decline in spot prices.

On the cost side, fluctuations have been moderate; prices for key spandex raw materials—PTMEG and pure MDI—have traded within narrow ranges, and the transmission of crude oil price volatility has been limited. Costs lack both the momentum for a strong rally and the risk of a collapse, further reinforcing the trend of narrow-range price fluctuations for spandex.

However, sluggish downstream demand has capped the upside potential; as the textile industry entered the traditional summer off-season in June, operating rates for weaving mills in the Jiangsu and Zhejiang regions remained low. Downstream fabric and garment manufacturers limited their purchasing to immediate needs, with no large-scale restocking taking place. Market trading was lackluster and traders struggled to move inventory, with some individual sellers offering slight price concessions to offload stock. Lacking the momentum to rally, the spot market remained locked in a standoff where manufacturers held firm on prices while downstream buyers adopted a wait-and-see approach.

Looking ahead, the industry currently exhibits high capacity concentration, with leading enterprises possessing strong capabilities to control volume and stabilize prices; a low-inventory environment provides a floor for spot prices. Following a price recovery in the first half of the year, industry losses have narrowed significantly, and companies show little willingness to proactively implement substantial price cuts. Bearish factors are concentrated on the demand side: the summer off-season for textiles and apparel persists, orders for new autumn/winter products have yet to be placed in volume, and inventories at downstream weaving mills are accumulating slowly; furthermore, weak end-market orders are dampening enthusiasm for raw material procurement. Additionally, having previously restocked heavily, spandex traders are now adopting a conservative purchasing stance, making sustained buying interest unlikely. Overall, spandex prices are highly likely to continue fluctuating at high levels with a weak undertone

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