The spandex market in Fujian remained in a consolidation phase at the end of July, with a delicate balance between cost-side strength and demand-side caution. According to industry public data, ex-factory prices for 20D, 30D, and 40D specifications were steady at 32,000-34,000, 31,000-32,000, and 29,000-31,000 yuan per ton respectively. While the price range showed no major fluctuations, the underlying dynamics hint at accumulating tensions.
Cost-Driven vs. Demand-Led Dynamics
Key raw materials for spandex production, PTMEG and MDI, have seen sustained price increases, directly lifting production costs. For Fujian, a major spandex production hub, cost pressure has translated into firm ex-factory quotes, but downstream textile mills have not fully accepted these levels. Most buyers adopt a just-in-time procurement strategy, avoiding large inventory buildup. This "cost push, demand cap" pattern has created a fragile equilibrium within the current price range.
From an industrial cluster perspective, spandex plants in Fujian are operating at moderate capacity—neither cutting output aggressively due to cost pressure nor slashing prices to chase weak demand. This restraint suggests that leading producers prefer price stability over a price war. However, if raw material costs continue to rise while downstream demand remains sluggish, spandex makers will face further margin compression.
Shifts in Downstream Buying Patterns
Late July is typically the tail end of the off-season in textiles, but this year, downstream fabric mills have been notably more cautious. Industry data shows that operating rates for circular knitting and warp knitting mills in Jiangsu, Zhejiang, and Fujian are 5-8 percentage points lower year-on-year, implying reduced spandex consumption. Buyers are strictly adhering to a "produce-to-order, purchase-to-order" approach, minimizing raw material inventory cycles.
This shift puts greater working capital pressure on spandex traders. Inventory turnover days in the intermediate channel have stretched from the usual 15-20 days to 25-30 days, with some small and medium traders even offering discounts to destock. However, such discounted volumes remain limited and have not yet disrupted the overall pricing framework.
Three Key Variables for Future Price Trends
Looking into August, the spandex market's direction hinges on three factors. First, whether raw material prices can stabilize. Planned maintenance at some PTMEG and MDI plants could tighten supply, further pushing up costs. Second, the recovery of export orders for apparel. Late August typically marks the start of autumn/winter fabric orders; a rebound in foreign orders would directly boost spandex demand. Third, changes in industry inventory levels. Current spandex inventories stand at 20-30 days, moderately high. If inventories continue to build, some producers may offer minor concessions to free up cash.
For the Fujian spandex cluster, a sharp price swing in either direction is unlikely in the near term. The more probable scenario is that mainstream prices oscillate within a narrow band, supported by costs, but the price spread between specifications may adjust due to varying supply-demand dynamics. Fine-denier grades like 20D, with broader applications and stronger demand resilience, will maintain firmer support; conventional grades like 40D face greater competitive pressure.