The spandex market at the end of June can best be described as 'stalemate.' Zhejiang Province, as the core production and consumption hub for spandex in China, serves as a crucial barometer for the entire industry. According to public market data, on June 29, quotations for major spandex specifications in the region remained virtually unchanged from the previous period: 20D held at 32,000-34,000 RMB/ton, 30D at 31,000-33,000 RMB/ton, and 40D hovered within the 29,000-31,000 RMB/ton range.
This apparent price 'calm' conceals significant shifts occurring on both the supply and demand sides. On the cost front, support from upstream raw materials is weakening, directly undermining the confidence of spandex producers to maintain prices. On the demand side, the textile market has entered its traditional off-season. Downstream weaving and garment enterprises are generally conservative in their procurement, with orders mostly small and urgent, lacking the basis for concentrated volume.
The Underlying Logic of Price Stalemate
The core contradiction in the current spandex market lies in the tug-of-war between downward cost pressure and relatively rigid supply. On one hand, prices of key raw materials like BDO and PTMEG have recently softened, lowering the production cost base for spandex. Theoretically, this opens up room for price reductions.
On the other hand, leading industry players, leveraging their scale advantages and relatively stable customer relationships, are reluctant to cut prices easily. Having experienced severe volatility in previous years, producers are highly vigilant against price wars and prefer to maintain supply-demand balance by controlling operating rates. This creates the current deadlock of 'costs falling, but prices not falling.'
For downstream buyers, this stalemate means limited room for negotiation but also less fear of sudden price spikes. The market is in a delicate balance, where any change in inventory levels or a single price adjustment by a major factory could break the equilibrium.
Regional Response: The 'Cold' and 'Hot' in Zhejiang
The market performance in Zhejiang, particularly in spandex consumption centers like Shaoxing, Xiaoshan, and Yiwu, is highly representative. Feedback from the industrial belt reveals a clear 'uneven distribution of cold and hot.'
- The 'Cold' Side: Inventory of conventional spandex grades (e.g., 40D) is being digested slowly, with traders facing higher selling pressure. Some small and medium-sized traders, in need of capital turnover, may offer actual transaction prices slightly below the mainstream quotation range. This reflects the weakness in end-garment orders transmitting upstream.
- The 'Hot' Side: Inquiries for differentiated, functional spandex products, such as chlorine-resistant and antibacterial spandex, are relatively active. This confirms the industry's trend towards higher value-added products. Even in the off-season, products with technical barriers can still command a premium.
This divergence has a significant impact on factory production planning. Continuing large-scale production of conventional products risks inventory buildup and margin compression. Shifting to differentiated products requires more R&D investment and customer certification time.
Practical Recommendations
For Buyers - This is a window to build safety stock: A clear price bottom is not yet visible, but the probability of a sharp decline is low. Based on your order cycle, purchase in batches to avoid concentrating orders that could push prices up. - Evaluate differentiated product substitution: Given the limited room for negotiation on conventional products, assess whether cost-effective differentiated spandex (e.g., low-temperature setting, high recovery) can replace existing specifications to optimize cost structures.
For Factories (Producers) - Flexibly adjust operating rates: Do not blindly pursue full production. Dynamically adjust production pace based on inventory levels and order visibility. It is better to reduce output to support prices than to accumulate inventory that forces price cuts. - Intensify technical marketing: Shift product development focus from 'cost reduction' to 'value addition.' Proactively promote special performance spandex like heat-resistant or chlorine-resistant varieties to customers. Help them solve pain points in their end products (e.g., sportswear, swimwear) to secure long-term orders.
In summary, the short-term direction of the Zhejiang spandex market will depend on the pace of downstream demand recovery and the next move of raw material costs. Until the off-season effect completely fades, the market is likely to continue this stalemate. For all parties in the supply chain, this is both a stress test and an opportunity to adjust strategies and optimize product portfolios.