According to the Commodity Market Analysis System of SunSirs, the domestic spandex market price had stabilized since June, with an average price of 33,250 RMB/ton in the 40D market as of June 14th, which was unchanged from the beginning of the month.
Analysis review
The market negotiation price was low, and the demand side order volume was average. Downstream enterprises were cautious in stocking, and the inventory pressure of spandex manufacturers was increasing. Under high cost pressure, the spandex industry was experiencing losses and factories were reducing production.
In early June, the raw material BDO market was stronger, the overall factory operating rates was decreased and the spot goods in the market were in a controlled supply. However, the follow-up of terminal demand was insufficient, and the operating rate of Jiangsu and Zhejiang weaving machines had dropped to around 60%. Orders were mainly in small batches, and the recovery of foreign trade orders was not obvious, and there was still some pressure. The accelerated recovery of textile supply chains in Southeast Asia and South Asia had led to fierce international competition in China's textile industry. From January to April, China's cumulative exports of textiles and clothing reached 92.9 billion US dollars, a year-on-year decrease of 2.9%.
Market outlook
Analysts from SunSirs believe that as of the 14th, the spandex market was at a low level and the overall wait-and-see atmosphere was strong. Under the traditional off-season of high temperature and humidity, there are still expectations of weaker demand performance, which will be negative for spandex prices.
