Generally, April to July is the off-season for spandex, and downstream demand continues to decrease. As of now, the price of spandex 40D has dropped by 2,000 yuan/ton from the highest value since the beginning of the year, and the price of 20D has dropped by 1,500 yuan/ton. .
As shown in the figure above, the price of spandex raw materials has varied. As of now, the price of PTMEG has increased by 2.7% compared with the same period last month. Around %, due to the strong PTMEG market and slightly tight market supply, the downstream spandex market has been slow to follow up. As of now, the mainstream negotiated price for supply from Sichuan Tianhua and Chongqing, Jiangsu, Zhejiang, BASF and other supply sources is 18,500-19,500 yuan/ton. The higher-end price is already 20,000 yuan/ton. Sinopec’s lower-quality quotation is 18,000-18,500 yuan/ton.
Pure MDI, another main raw material, fell by about 4.5% compared with the same period last month. It is understood that the current domestic pure MDI market is flat, the intention to purchase goods in various downstream fields is average, the equipment is operating normally, and the contract offer is stable , spot dealers are also not willing to offer low prices. In East China, the spot price of barreled goods from Covestro, Kumho and other sources is 27,500-29,000 yuan/ton; Wanhua and Huntsman’s April bulk water quotations are 31,500 yuan/ton and barreled 31,700 yuan/ton. Ton.
On the whole, the raw material market is in a dilemma. In the short term, the increase is not big. In the later period, it may maintain steady progress. The decline slows down slightly, and buyers are still cautious.
In terms of demand, the start-up of downstream circular knitting machines is around 60%, the start-up of warp knitting is 76%, and the start-up of lace is 60%. The cover yarn start-up is at 72%, which is basically a stable trend. A salesperson from Hyosung Spandex said: “Currently, the Shengze covered yarn market is quite impressive, and the super-soft market is booming. Now the market is in a slump, and the plain fabric market and the circular knitting machine market are also average.” Looking specifically at local markets, Jiangyin circular knitting machine The yarn market sentiment is mediocre, with weaving companies operating at a stable rate of 60-70%. In the Xiaoshao circular knitting machine market, orders from powerful companies are relatively average. The load of double-sided knitting companies is 60%, and that of single-sided knitting machines is 60%. Xiaoshao’s wrapped yarn market is also operating normally, with the load of the machine-wrapped yarn industry reaching 70% and the empty bale yarn industry holding 60-70%.
Outlook: From a cost perspective, spandex raw materials are expected to stop falling and stabilize, but there is still little room for growth. From the supply and demand side, the operating rate of spandex manufacturers remains high, and new production capacity continues to enter the market, such as Huafeng Group’s annual output of 100,000 tons of differentiated spandex, 100,000 tons of polyurethane resin and 320,000 tons of cyclohexanol projects, Taihe New Materials It is estimated that the total investment by 2022 will be 7 billion yuan, etc., thus exacerbating the contradiction between supply and demand on the market. However, the current enthusiasm for downstream stocking is average. The spandex industry’s start-up load this week remained at 84%, and the industry’s average inventory increased by 1 day to 33 days. Therefore, the author predicts that the spandex market will be weakly stable in the short term. </p
