Starting from mid-to-early May, the domestic spandex market price showed a slight upward trend. As of May 27, the average price of 40D specifications was 69,400 yuan/ton, an increase of 2.66% from May 13 and a year-on-year increase of 117.55%. The downstream milk silk, velvet and other elastic fabrics have strong demand, and the market supply continues to be tight, supporting their prices to increase. Spandex manufacturers have started to maintain a high level of around 90%. Some manufacturers say that the inventory is low, and new orders are temporarily not accepted. The main supply is to old customers.
The supporting effect on the cost side is general. The raw material PTMEG market is narrowly profitable, the cost-side BDO trend continues to decline, the cost-side is negative, and the quotation is lowered in a narrow range. Among them, mainstream factories with 1800 molecular weight sources are bidding near 41,500 yuan/ton, and real order negotiation refers to 40,000-41,500 yuan/ton, and the industry starts 7.8%, maintaining stable operation. Pure MDI declined in a narrow range. Market discussions were around 19,600 yuan/ton wire transfer and barreled self-pickup, down 200 yuan/ton from mid-May. The overall wait-and-see atmosphere was strong, and 80% of the industry started operating at a high level.
The weaving market in the lower reaches of Jiangsu and Zhejiang has gradually entered the off-season. There are not many new orders and some large circular knitting factories have production stocks. In the off-season, the price of raw materials remains high and difficult, and the gross profit of the industry is constantly being compressed. The production enthusiasm of large circular knitting plants is not high, and the operating rate of most large circular knitting plants is at 50% to 60%, maintaining weak stability. The overall orders of warp knitting factories in Haining area declined, and some mainstream factories were under heavy pressure on receivables and forced to lower their operating rates, starting at around 6.6%.
Business agency analysts believe that although spandex manufacturers are currently operating at a high level, their supply is still tight and inventory levels are decreasing. Some manufacturers have indicated that they have limited discharge and have strong intentions to increase. In addition, statistics show that the domestic spandex production capacity is 870,000 tons, the monthly output is 67,000 tons, a small amount of imports (about 2000-3000 tons of imports per month), a small amount of exports (about 6000-8000 tons of exports per month), and the number of exports is high Regarding the quantity of imports, it has a better adjustment mechanism for imports and exports. It is expected that this mechanism will also play a certain role in maintaining the price of spandex in the future. However, the current cost-side support is insufficient, and the downstream market purchases on-demand and cautiously wait and see, which is a certain negative. Overall, it is expected that the price of spandex will continue to run at a high level in the short term.
