Spandex prices have remained elevated for weeks, but the anticipated correction has yet to materialize. On July 29, the Fujian spandex market continued its 'consolidation' phase, with clear price brackets for different deniers: 20D at 32,000-34,000 RMB/ton, 30D at 31,000-32,000 RMB/ton, and 40D at 29,000-31,000 RMB/ton. These levels represent a year-on-year increase of over 15%.
Cost-Push vs. Demand Pull
The primary driver of spandex price firmness is upstream raw materials. Pure MDI and PTMEG, the two main inputs, have seen sustained price increases, directly raising production costs. Industry data shows PTMEG has risen nearly 10% in the past quarter, while pure MDI remains elevated. Cost transmission to spandex is now largely complete, giving mills strong motivation to hold prices.
However, downstream demand has not matched this force. Fujian, a key spandex production and consumption hub, hosts numerous warp-knitting and yarn-wrapping mills. These buyers are adopting a 'just-in-time' procurement strategy, avoiding large inventory builds. This caution reflects a lack of robust growth in end-apparel orders, preventing fabric mills from increasing raw material stocks.
Regional Dynamics: Fujian and National Links
Fujian's spandex market mirrors national trends. China's spandex capacity is concentrated in Zhejiang, Fujian, Jiangsu, and Shandong. Fujian's market, dominated by small-to-medium fabric mills, is more sensitive to price changes. As spandex prices breached the 30,000 RMB/ton mark, some local mills have adjusted product mixes, reducing high-spandex-content fabrics and developing low-stretch or non-stretch alternatives.
This shift is not isolated. From Keqiao to Shengze, Nantong to Changle, resistance to high spandex prices is spreading in the weaving sector. But supply-side constraints persist. New capacity additions this year are limited, and some older units are offline due to environmental inspections or maintenance, keeping overall supply tight.
Price Outlook and Procurement Strategy
In the near term, spandex prices are likely to maintain a high-range consolidation. Cost support will not fade quickly, and demand, ahead of the traditional peak season (September-October), is unlikely to collapse. Thus, the bias remains for prices to rise rather than fall. However, the dampening effect of high prices on demand is accumulating. If end-order volumes continue to disappoint, a correction may occur by the end of Q3.