Spandex Market Stalls: Fujian Prices Hold Steady, Downstream Buyers Turn Cautious

The spandex market is caught in a silent tug-of-war. As of June 29, Fujian's spandex prices remained unchanged: 20D at 33,000-35,000 yuan/ton, 30D at 32,000-33,000 yuan/ton, and 40D at 30,000-31,000 yuan/ton. This price stagnation has persisted since late May, with no signs of movement in either direction.

Between Cost and Demand

Raw material prices for PTMEG and pure MDI have narrowed their fluctuations recently, giving spandex producers a relatively stable cost floor. Yet the real reason for the price freeze is the simultaneous contraction on both supply and demand sides. Upstream mills are reluctant to cut prices, fearing a chain reaction that would erode already thin margins. Downstream fabric and garment makers, meanwhile, stick to just-in-time purchasing, reducing order cycles to 15-20 days and keeping minimal inventory. This 'you won't budge, I won't order more' stalemate keeps transaction volumes low.

Fujian's Signal to the Industry

As one of China's major spandex production hubs, Fujian's price trends often serve as a bellwether for the entire national market. The current sideways movement indicates that the spandex industry is under dual pressure: destocking and margin protection. Upstream chemical fiber plants are running at about 70% capacity, while downstream circular knitting and warp knitting mills have seen their operating rates drop from 60% in May to below 50%. The narrowing supply-demand gap means a price breakout will require a new catalyst—either a sharp swing in raw material costs or a genuine recovery in end-user demand.

Implications for Buyers

For fabric and apparel sourcing professionals, current spandex prices occupy an awkward middle ground. Compared with the same period in 2024, prices are about 8%-10% lower, but they haven't fallen to the trough levels of late 2023. This 'not high, not low' zone makes procurement decisions tricky: betting on further declines risks supplier reluctance or delivery delays, while locking in now means missing potential savings.

Practical Recommendations

For Sourcing Teams - Extend procurement cycles for standard spandex grades (e.g., 40D) to three months, using annual framework agreements to lock in current prices and avoid quarterly volatility. - Monitor operating rates and inventory days at Fujian and Zhejiang spandex plants; if industry utilization drops below 65% or inventory exceeds 25 days, consider it a warning signal for price declines.

For Foreign Trade Companies - Include a price adjustment formula (e.g., 'base price + floating factor') in export contracts for spandex-containing products, protecting margins from domestic price swings. - Prioritize sourcing OEKO-TEX certified spandex, as about 30% of Fujian's capacity now meets this standard, helping to satisfy Western buyers' environmental compliance requirements.