Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic spandex market experienced a decline this week (October 30th November 3rd). As of November 3rd, the price of 40D spandex was 33,750 RMB/ton, a decrease of 1.46% compared to the beginning of the week and a year-on-year decrease of 11.18%. The industry's starting point remained around 72%.

Analysis review

This week, the domestic pure MDI market continued to rise, with an average price of 21,750 RMB/ton in the East China market as of November 3, an increase of over ,1000 RMB/ton compared to the end of October. The overall domestic supply had once again decreased, with scarce imported goods and a shortage of spot goods, causing traders to hesitate to sell and drive up prices. In the short term, the tight spot situation was difficult to alleviate, and the industry remained bullish, with downstream wait-and-see purchasing mainly based on demand. With the continuous decline of raw material BDO, the cost support for PTMEG had decreased, and the market was operating in a stalemate. The quotation for 1,800 molecular weight remained at 21,000 RMB/ton, and the overall operating rate of the industry was around 83.4%.

With the end of October, the traditional peak season for textiles had also come to an end, and downstream textile enterprises were still mainly engaged in on-demand procurement, with insufficient transaction performance. Currently, the comprehensive operating rate of domestic Jiangsu and Zhejiang looms was around 75%. The issuance of domestic and foreign trade orders was average, with domestic trade orders mainly focusing on winter fabric orders, while foreign trade orders were still dominated by sporadic small orders from some brands. Adding to the difficulties in cash flow for manufacturers, terminal consumers held a pessimistic attitude.

Market outlook

Analysts from SunSirs believe that the current shortage of pure MDI raw materials in stock still leaves room for exploration in the market, and there is still good support for the cost side of spandex. But as the peak season for terminal textiles ended, demand further shrunk. Under the drag of demand, the price of spandex will continue to decline.

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