In July, the domestic spandex market slightly declined, with an average price of 33375 yuan/ton in the 40D market as of July 31, a decrease of 0.74% compared to the beginning of the month. The current high raw material prices have led to low losses in the spandex industry, with the overall industry operating at around 72%. Downstream textile off-season demand is exhausted, causing a drag on prices.
The domestic pure MDI price center is constantly strengthening, and the market spot is limited. The molecular weight quotation for PTMEG’s mainstream factory 1800 is based on 19500 yuan/ton, and some factories do not provide external quotations for the time being. The overall operating rate of the industry is around 75%.
From a downstream perspective, the recovery of terminal textile demand is not as expected, and capital turnover is difficult. In the off-season of traditional industries, there is a strong wait-and-see attitude and a moderate 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 has slightly declined to below 65%, and there is an expectation of further negative reduction.
Analysts from Business Society believe that currently, downstream textile enterprises of spandex mainly consume inventory of raw materials in the early stage, and the improvement of orders is 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, weak demand will drag down, and there is still a possibility of a downward trend in spandex prices.
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