According to the Commodity Market Analysis System of Business Society, the domestic spandex market has temporarily stabilized this week (July 17-22), with an average price of 33500 yuan/ton in the 40D market as of July 22, which is unchanged from the beginning of the week. The current raw material prices are still at a high level, and the spandex industry is experiencing losses. The operating rate remains low. As of July 20, 2023, the overall industry operating rate of the domestic spandex industry is around 72%.
The focus of the raw material pure MDI market is relatively strong, and there are few spot goods in the market. Additionally, factories have plans to continue reducing production, which limits their ability to add new orders, and their cost support continues to strengthen. The overall operating rate of the PTMEG industry is around 72%. The load of two 46000 ton/year PTMEG units of Sinopec Great Wall Energy and Chemical in Ningxia is around 90%, and the load of two 30000 ton/year PTMEG units of Henan Energy and Chemical is around 60%. The mainstream factory’s 1800 molecular weight quotation is around 19500, and some factories do not provide external quotations.
Recently, terminal inventory has gradually accumulated, and with the high temperature in summer and off-season factors, the workload of most downstream weaving factories is relatively low. Currently, there is no substantial improvement in both domestic and export sales of the terminal, and there may be further room for decline in construction.
Analysts from Business Society believe that the current cost side support is acceptable, but the actual demand side is bearish, with poor market trading enthusiasm and average enthusiasm for raw material stocking. Under low demand and rising cost pressures, it is expected that the spandex market price will remain mainly on a wait-and-see basis in the short term.
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