Price trend
In November, the domestic spandex market declined slightly. As of November 24, the average market price was 36,700 RMB/ton, down 3.42% from the beginning of the month and 53.89% year on year.
Analysis review
The supporting role of the cost side was weakened, the PTMEG market was weak, and the factory still intended to support the price. The market price of PTMEG (1,800 molecular weight) was 19,000-19,500 RMB/ton. The overall negotiation atmosphere of the pure MDI market was not good, and the traders' quotations were lowered. The market reference price on the 24th was 17,500-18,000 RMB/ton, which was paid by telegraphic transfer, in barrels, and picked up by the buyers themselves.
Downstream end customers were not enthusiastic about taking goods and followed up conservatively. At present, terminal textile orders are difficult, and many small and medium-sized textile mills have been unable to obtain orders. At the same time, due to the epidemic situation, the logistics is limited, and it is difficult for finished products and raw materials to enter or exit. Many regions have frequent control, which has affected the factory operation to some extent. In addition, in the off-season, it is hard to hide the weakness of the loom operating rate. The loom operating rate in Jiangsu and Zhejiang has decreased to below 56%.
Market outlook
Analysts from SunSirs believe that the current raw material market is weak, and the support from the cost side of spandex is declining. At the same time, the demand of the downstream terminal market is insufficient to follow up, and the procurement is mainly rigid demand. It is expected that the price of spandex will still move downward in the short term.
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