Price trend
According to the monitoring of SunSirs, the domestic spandex market fell slightly in November. As of November 29, the average market price was 36,700 RMB/ton, down 3.42% from the beginning of the month and down 52.71% year on year.
Analysis review
At the beginning of November, most manufacturers stuck to their offer, but with the weak focus of the main raw material PTMEG market, the pure MDI fell in shock, and the cost side support weakened. At the same time, the operating rate of the spandex industry had temporarily stabilized around 70%, and the supply of goods was sufficient. Although the manufacturers were active in shipping, the downstream terminal market was in a lack of trading atmosphere. It was difficult to stick to it from the middle to late of the month, and the price fell under pressure.
In November, the operating rate of the raw material PTMEG industry was lowered to around 65%, but the price was weak, mainly affected by the weak trend of BDO on the cost side. At the end of this month, the market negotiation and evaluation price of PTMEG (1,800 molecular weight) in the domestic spandex market was 19,000-19,500 RMB/ton, down 3,000-3,500 RMB/ton from the end of last month. The pure MDI market also declined, the overall demand was weak, traders were more active in shipping, the focus of market mainstream negotiations continued to decline, the market reference price was 17,500-18,000 RMB/ton.
Domestic textile and clothing sales data continued to decline, and the window of foreign textile industry replenishment stage had been closed. While domestic sales were weak and export sales were poor, the drag on the demand side might be more obvious. After the end of the traditional peak season of "golden September and silver October", the terminal textile enterprises were not willing to take goods, and they mainly purchased goods on demand. Weaving enterprises had further reduced their load. By the end of November, the operating rate of circular looms and wrapped yarns in Shaoxing, Xiaoshan, Zhejiang was 30 to 50 percent, the operating rate of circular looms and wrapped yarns in Jiangsu was 30 to 50 percent, and the operating rate of circular looms, wrapped yarns and warp knitting in Guangdong was 30 to 60 percent.
Market outlook
Analysts from SunSirs believe that the cost side support had weakened, and the downstream mainly followed up on rigid demand, and the overall market performance was weak and weak. At present, the spandex market lacks confidence in the future market, and it is expected that the price of the spandex market will remain downward in December.
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