SunSirs: The Cost Weakened, the Demand Was Weak, and the Price of Spandex Fell Back

Price trend

According to the price monitoring of SunSirs, the domestic spandex market fell back in November. As of November 21, the average price of the 40D specification market was 36,750 RMB/ton, down 3.29% from the beginning of the month and down 53.95% year on year.

Analysis review

Spandex manufacturers started to work at about 70%, or there was a downward trend, but the market spot supply was relatively sufficient. The cost side support was weakened, the downstream market transaction was weak, and all parties were bearish about the future market.

The operating rate of the raw material PTMEG industry remained stable at around 65%, BDO on the cost side continued to decline, and there was no real order negotiation in the downstream, and the market was weak. On the 21st, the market quotation of PTMEG (1,800 molecular weight) was 20,000-21,000 RMB/ton. The overall confidence of the pure MDI market was insufficient, traders were more active in shipping, downstream demand was low, and the focus of the market mainstream negotiation continued to move down. The reference price was 18,000-18,500 RMB/ton (Telegraphic transfer, barrel packing and self picking).

In the textile terminal industry, orders for "Double 11" and "Double 12" had been completed successively, with obvious off-season characteristics and weak demand. In terms of weaving, it was hard to hide the weak trend of decline in the operating rate. The operating rate of looms in Jiangsu and Zhejiang had decreased to below 56%.

Market outlook

Analysts from SunSirs believe that the supporting role of the cost side was weak and stable, the trading and investment in the downstream terminal market was weak, and the demand follow-up was insufficient. All parties were cautious about the future market, and it is expected that the spandex market will maintain a downward trend in the short term.

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