On July 29, spandex prices in Zhejiang showed slight softening. 20D ranged from 31,000 to 33,000 RMB/ton, 30D from 31,000 to 32,000, and 40D from 28,000 to 30,000. Compared to the previous month, each grade dropped by 200-500 RMB/ton, reflecting weakening cost support and cautious downstream procurement.
Cost Side: Raw Material Weakness Squeezes Margins
Key spandex raw materials PTMEG and pure MDI have both fallen recently. PTMEG spot prices declined about 3% from early July, while pure MDI saw sharper drops, with some east China deals falling below 18,000 RMB/ton. These declines directly undermined spandex cost support, but mills haven't fully passed on the savings, suggesting they still aim to preserve some profit buffer in the off-season.
Demand Side: Just-in-Time Procurement Dominates
Downstream fabric mills are adopting a "buy-as-needed" strategy. In Xiaoshan-Shaoxing, operating rates for circular knitting and covering machines hover around 60%, about 5 percentage points lower than last year. End-use garment export orders have entered the traditional off-season, with brands tightly controlling finished inventory. Some medium-sized mills report spandex inventory cycles have shrunk to 7-10 days, well below the normal 15-20 days.
Regional Dynamics: Xiaoshan-Shaoxing Faces Pricing Pressure
Zhejiang's Xiaoshan-Shaoxing region accounts for about 40% of China's spandex capacity, making its price movements a bellwether. However, new capacity in Xinjiang and Ningxia has recently come online, undercutting traditional players by 500-800 RMB/ton. To defend market share, Zhejiang mills have been forced to follow price cuts, intensifying regional competition.
Practical Advice for Buyers
Current spandex prices are at year-to-date lows, but downside risk remains. Buyers should:
- Lock in short-term orders for 40D and other standard grades, signing 15-20 day supply contracts to avoid inventory write-downs from further price drops.
- Stay cautious on 20D and 30D, which are more sensitive to sportswear and underwear orders. Wait until mid-August when autumn order clarity emerges.
- Monitor new capacity arrivals from Xinjiang and Ningxia. If the regional price gap widens to over 1,000 RMB/ton, consider cross-region sourcing.
Practical Advice for Exporters
Exporters must guard against spandex price volatility eroding order profits:
- Include raw material price fluctuation clauses in FOB or CIF contracts, triggering renegotiation if spandex prices move more than 5%.
- For European and U.S. markets, secure OEKO-TEX certification for spandex fabrics in advance, as brands tighten environmental compliance. Certified suppliers gain stronger bargaining power.
- Use current exchange rate windows to lock in forward contracts for USD-denominated spandex import purchases.
Overall, Zhejiang's spandex market will likely stay in a "weakly stable" pattern in the near term. With no catalyst for raw material recovery and sluggish demand, the start of autumn orders in mid-to-late August will be a key price direction signal. Intensified regional competition and ongoing raw material weakness are forcing traditional spandex mills to shift from "scale-driven" to "cost control plus product differentiation" strategies.