According to the Commodity Market Analysis System of the Business Society, the domestic spandex market experienced a decline this week (October 30th November 3rd). As of November 3rd, the price of 40D spandex was 33750 yuan/ton, a decrease of 1.46% compared to the beginning of the week and a year-on-year decrease of 11.18%. The industry’s starting point remained around 72%.
This week, the domestic pure MDI market continued to rise, with an average price of 21750 yuan/ton in the East China market as of November 3, an increase of over 1000 yuan/ton compared to the end of October. The overall domestic supply has once again decreased, with scarce imported goods and a shortage of spot goods, causing traders to hesitate to sell and drive up prices. In the short term, the tight spot situation is difficult to alleviate, and the industry remains bullish, with downstream wait-and-see purchasing mainly based on demand. With the continuous decline of raw material BDO, the cost support for PTMEG has decreased, and the market is operating in a stalemate. The quotation for 1800 molecular weight remains at 21000 yuan/ton, and the overall operating rate of the industry is around 83.4%.
With the end of October, the traditional peak season for textiles has also come to an end, and downstream textile enterprises are still mainly engaged in on-demand procurement, with insufficient transaction performance. Currently, the comprehensive operating rate of domestic Jiangsu and Zhejiang looms is around 75%. The issuance of domestic and foreign trade orders is average, with domestic trade orders mainly focusing on winter fabric orders, while foreign trade orders are still dominated by sporadic small orders from some brands. Adding to the difficulties in cash flow for manufacturers, terminal consumers hold a pessimistic attitude.
Analysts from Business Society believe that the current shortage of pure MDI raw materials in stock still leaves room for exploration in the market, and there is still good support for the cost side of spandex. But as the peak season for terminal textiles ends, demand further shrinks. Under the drag of demand, the price of spandex will continue to decline.
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