The spandex market in Fujian entered a delicate price equilibrium in late June. Prices for 20D remained stable at 33,000-35,000 yuan per ton, 30D at 32,000-33,000 yuan per ton, and 40D at 30,000-31,000 yuan per ton. This range has persisted for nearly a month, with minimal fluctuation since late May.
Cost vs. Demand
Upstream raw materials like PTMEG and MDI have maintained relatively firm prices, providing cost support for spandex producers. However, this support has not translated into higher downstream prices. Fujian, a key spandex production hub, reflects broader supply-demand dynamics in East China and beyond. Downstream knitting and garment factories are adopting a 'buy-as-needed' approach, limiting purchases to immediate requirements and resisting higher raw material costs. This leaves spandex mills with little room to raise prices, caught between rising costs and weak demand.
Regional Response and Transmission
Fujian's spandex downstream is dominated by warp knitting and circular knitting sectors, serving sportswear and underwear markets. Current brand orders have not shown significant growth, dampening midstream inventory buildup. The inability to pass on cost increases downstream signals weak final consumer demand. For spandex mills, the 'stable' price is a passive equilibrium—raising prices risks losing orders, while cutting prices may lead to losses. If this stalemate persists, mills may adjust operating rates to balance supply, influencing future price trends.
Implications for Buyers and Mills
For buyers, the current price window offers a stable procurement environment, but bulk stocking is not advisable. If end-demand fails to recover in Q3, spandex prices may soften. For mills, maintaining price stability comes at the cost of rising inventory. Industry data shows that spandex social inventory in H1 2025 was at a moderately high level. If demand weakens further during the traditional July-August off-season, smaller mills could face cash flow pressures.