The domestic spandex market is stable this month (October), and most manufacturers maintain stable operations. According to the price monitoring of SunSirs, the average market price as of October 28 was 80,600 yuan/ton, which was the same as the beginning of the month and a year-on-year increase of 116.67%. Entering October, inventory levels have increased slightly, but there is no major pressure yet. Since the beginning of the month, most spandex manufacturers have lowered their production starts, with the industry’s start-up reaching around 7.5%, indicating a decreasing trend in market supply. Towards the end of the month, some manufacturers’ equipment operations have steadily resumed, and supply has gradually increased. The current industry operation has been raised to about 8.2%.
The overall trading atmosphere in the pure MDI market is light, and the mainstream reference is 23,000-23,500 yuan/ton for wire transfer in barrels. The PTMEG factory is still undergoing partial maintenance and load reduction, and the industry’s operating capacity is at 7.40%. The price has also continued its upward trend. Currently, mainstream factories for 1800 molecular weight supply are offering prices around 48,000-49,000 yuan/ton, and actual order negotiations are based on 47,000-49,000 yuan/ton.
Domestic PTMEG manufacturers’ installation status:
The downstream circular knitting industry has started operations at 40-50%, and the warp knitting field has started operations at 4.5-5.50%, with a slight rebound in operations. However, the demand for spandex is not large, and most customers determine production based on sales, so there is a continued need to follow up. There is greater resistance to price increases for new orders. Factories are mostly digesting early inventory, and the overall market has a strong wait-and-see atmosphere.
From the perspective of the textile industry, the Business Society Textile Index, as of October 27, the textile index was 1101 points, which was higher than that at the beginning of the month. 1007 points increased by 94 points, a decrease of 4.76% from the highest point in the cycle of 1156 points (2018-09-03), and an increase of 61.67% from the lowest point of 681 points on August 13, 2020. (Note: The cycle refers to 2011-12-01 to the present)
In terms of exports, despite facing unfavorable factors such as soaring sea freight, production and electricity restrictions, and rising raw material prices, my country’s textiles and apparel Exports still maintain good growth momentum. According to recent data released by the General Administration of Customs, in U.S. dollar terms, textile and apparel exports ended four consecutive months of decline and resumed growth in September. Exports in that month increased by 2.66% year-on-year and 18.81% compared with the same period in 2019.
Business News analysts believe that the current installation operations of spandex manufacturers have basically returned to normal, and supply and inventory may be increasing. Downstream terminals purchase on demand, and transactions are still difficult. However, the high cost of raw materials currently provides good support. At the same time, “Double Eleven” e-commerce clothing orders and winter home textile orders will pick up. There may be replenishment actions in the downstream, and spandex prices are expected to remain high. Mainly shock. </p
