Spandex Market Stalls at Highs: Cost Pressure Intensifies Battle with Downstream Demand

Spandex prices have entered a high-level stalemate at the end of July. Fujian, a key production and sales region in China, often reflects the subtle shifts in supply-demand dynamics across the industry. Latest public data shows 20D spandex at 32,000-34,000 yuan/ton, 30D at 31,000-32,000 yuan/ton, and 40D at 29,000-31,000 yuan/ton, with no significant week-on-week change. This price plateau is the result of two opposing forces: cost-driven support and demand-side suppression.

Cost-Side Rigidity

The primary driver of high spandex prices comes from upstream raw materials. Key monomers like pure MDI and PTMEG have risen steadily since Q2, directly inflating production costs. PTMEG prices are up over 15% from the start of the year, severely compressing spandex producers' margins. For Fujian manufacturers, current prices are more about 'passively following costs' than 'actively raising prices.' Their willingness to hold prices is strong, but actual bargaining power is constrained by raw material strength.

Cautious Downstream Signals

In contrast to cost rigidity, downstream demand is unoptimistic. Weaving mills in Fujian and neighboring Zhejiang and Guangdong report that terminal garment orders are recovering slower than expected, especially for stretch fabrics. This has shifted procurement strategies from 'building inventory' to 'buying on demand.' For the 40D grade, the most widely used in circular and warp knitting, actual transaction prices are leaning toward the lower end of the range at 29,000 yuan/ton, with buyers increasingly aggressive in price negotiations.

Regional Divergence

Fujian's spandex stalemate is not isolated. Other major regions like Jiangsu and Zhejiang show similar trends, but with subtle differences. In Yiwu and Shaoxing, inquiries for 20D fine-denier spandex have declined, while mills in Fujian's Changle area are slowing purchases due to high raw material inventories. This divergence means producers can no longer adopt a one-size-fits-all pricing strategy; they must adjust based on customers' order structures and financial conditions.

Outlook and Risks

In the short term, the spandex market will likely maintain a 'high price, low volume' pattern. If raw materials continue to strengthen, producers may be forced to raise prices again, but downstream absorption capacity will be the key variable. If terminal apparel export data fails to improve significantly in Q3, spandex could face a 'priced but not traded' dilemma. The biggest risk for market participants is the cumulative squeeze on margins across the supply chain—once raw material prices soften, spandex prices could correct rapidly.

Practical Recommendations

For Buyers - Avoid bulk purchases; adopt a 'small orders, fast buying' strategy to manage price volatility. - Monitor PTMEG and pure MDI spot and futures prices as reference points for spandex price negotiations. - Negotiate short-term (1-2 month) price lock agreements with suppliers to hedge against sudden raw material spikes.

For Spandex Producers - Optimize product mix by increasing output of high-value differentiated products (e.g., chlorine-resistant, low-temperature dyeable spandex) to offset margin erosion on standard grades. - Strengthen ties with downstream warp and circular knitting mills; use volume discounts or extended payment terms to secure core customer orders. - Implement dynamic raw material inventory management and use futures tools to hedge against PTMEG price upside risks.