Price trend
In July, the domestic spandex market slightly declined, with an average price of 33,375 RMB/ton of spandex 40D in the market as of July 31, a decrease of 0.74% compared to the beginning of the month. The high raw material prices led to low losses in the spandex industry, with the overall industry operating at around 72%. Downstream textile off-season demand was exhausted, causing a drag on prices.
Analysis review
The domestic pure MDI price center was constantly strengthening, and the market spot was limited. The quotation for 1,800 molecular weight PTMEG from mainstream factories of PTMEG was referenced at 19,500 RMB/ton, and some factories ded not provide a quotation for external use. The overall operating rate of the industry was around 75%, among which the load of the 46,000 ton/year PTMEG unit in Yanchang Petroleum was 40%, the load of the two 30,000 ton/year PTMEG units in Henan Nenghua was around 60%, and the 60,000 ton PTMEG unit in Panjin, Liaoning and Changchun was shut down in early May, with an uncertain restart time.
From a downstream perspective, the recovery of terminal textile demand was not as expected, and capital turnover was difficult. In the off-season of traditional industries, there was a strong wait-and-see attitude and a average enthusiasm for buying goods. In addition, due to factors such as the Asian Games and power restrictions, the operating rate of weaving machines in Jiangsu and Zhejiang had slightly declined to below 65%, and there is an expectation of further load reduction.
Market outlook
Analysts from SunSirs believe that as of July 31, downstream textile enterprises of spandex mainly consumed inventory of raw materials in the early stage, and the improvement of orders was not significant, forming negative feedback on upstream products. However, cost positive support still exists, and there is still some support for the spandex market price in the short term. In the future, there is still a possibility of a downward trend in spandex prices due to weak demand.
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