Market Supply Tight, Spandex Price Expected To Maintain Strong

In June, the price of spandex was 75200 yuan / ton as of June 30, which was 8.36% higher than that at the beginning of the month and 138.73% higher than that at the beginning of the month, reaching a new high in nearly ten years. The current market supply is tight, especially in June, the spandex industry started to maintain a high level near 90%. Although the production capacity remained stable, the inventory level continued to drop to a historical low.

Since the outbreak of the epidemic, consumers all over the world have been spending more time at home. Accordingly, the demand for leisure and sports clothing products has increased. Spandex is an important raw material for weaving all kinds of elastic fabrics with light texture and strong comfort. The spandex content of these garments is generally high, which drives the demand for spandex to increase. In addition, the overall demand is strong, and the application field of spandex continues to expand, and there is a huge space for growth in the fields of medical treatment, automobile interior decoration and other differentiated industries. It is estimated that there will be a stable growth rate of 6% - 10% in spandex demand in the future, and the spandex supply will be orderly.

According to statistics, by 2020, the total effective production capacity of spandex in China will reach 890000 tons, with a year-on-year increase of 4.0%. From 2021 to 2022, the new production capacity is also concentrated in a few leading enterprises such as Huafeng Chemical, Xiaoxing, Xinxiang Chemical fiber, Taihe new materials, etc. In 2020, the domestic spandex output will be about 800000 tons, and the average operating rate will be about 90%. In 2020, China's Spandex export is about 65000 tons, with a year-on-year increase of 4.3%, and the apparent consumption is about 750000 tons, with a year-on-year increase of 8.3%. In the first five months of this year, the export volume of spandex was about 40500 tons, up 58% over the same period last year.

In addition, the strong rise in raw materials is also an important reason for the price of spandex to go up all the way. Affected by environmental protection, the PTMEG industry chain is hot this year. The market price of PTMEG is 1800 molecular weight, and the mainstream factories offer 38000 yuan / ton, compared with 14000-15000 yuan / ton in the same period last year. The mainstream negotiation of pure MDI in the East China market is 19600-20000 yuan / T, and the quotation for the same period last year was 13600-14200 yuan / T.

Both domestic demand and export sales are favorable to promote the development of spandex industry. Spandex's own supply shortage is difficult to improve in the short term, some factories still have the intention to explore the rise. The support performance of superimposed raw material end is fair. Business community analysts predict that the spandex market is expected to remain strong in the short term, and it is still necessary to pay attention to the changes in cost side and terminal demand in the future.