Price trend
According to the Commodity Market Analysis System of SunSirs, the domestic spandex market had remained stable since mid May, with a price of 29,000 RMB/ton for 40D spandex as of May 22. The cost side support was still acceptable, and the demand for terminal textiles was insufficient as the off-season approached. Spandex factories were actively shipping, but some manufacturers faced inventory pressure.
Analysis review
As of May 22nd, the actual negotiated reference price for domestically produced 1800 molecular weight bulk PTMEG in the spandex field was stable at 15,000-15,500 RMB/ton, but it had slightly decreased by 500 RMB/ton compared to last month. In terms of equipment, Shaanxi Chemical's 46,000 ton/year PTMEG unit was shut down for maintenance starting from May 6th and is expected to be completed by the end of May. The pure MDI market spot reference was between 18,300 and 18,600 RMB/ton, and the overall supply from manufacturers had decreased. Traders were reluctant to sell and there was a willingness to raise prices.
Under the weakening demand during the off-season, downstream weaving factories were easing inventory pressure by reducing production passively and proactively. The seasonal decline in terminal demand was expected, and the downstream weaving machine operating rate was stable at around 71%. With the weakening of the textile market and the accumulation of factory inventory, the expectation for the future market was poor. In the short term, it may mainly consume its own stock, and the purchasing mentality is cautious.
Market outlook
According to analysts from SunSirs, the spandex market was lukewarm, and downstream enterprises had a strong wait-and-see attitude, lacking confidence in the market and maintaining a demand for replenishment. However, there was some positive support on the cost side. In the domestic pure MDI market, there were more device shutdowns and maintenance, and the overall supply of manufacturers will decrease. It is expected that the domestic pure MDI market may stop falling and rebound in the short term. Therefore, the short-term market situation for spandex remains mainly stagnant.
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