The spandex market is undergoing a typical off-season stress test. On July 29, the spandex market in the Xiaoshan-Shaoxing area of Zhejiang reported a consolidating trend, with key varieties under price pressure: 20D spandex traded in the 31,000-33,000 RMB/ton range, 30D hovered around 31,000-32,000 RMB/ton, and 40D slipped to 28,000-30,000 RMB/ton. Behind these figures lies a direct collision between cost and demand forces along the supply chain.
Cost Side: Weakening Raw Material Support
The main raw materials for spandex—PTMEG and pure MDI—have recently seen price declines, directly undermining cost support. This weakness is not an isolated event but a microcosm of the broader correction in the chemical sector. For spandex mills, this means that while profit margins remain temporarily intact, ex-factory prices have lost the rigid support from the cost side. In Zhejiang, the core spandex production region, companies must reassess inventory strategies—whether to increase procurement amid lower raw material prices or wait for clearer trend signals.
Demand Side: Just-in-Time Procurement, Cautious Inventory Building
Corresponding to the weakening cost side, spandex demand shows a clear 'just-in-time follow-up' pattern. Downstream fabric mills, particularly the dense clusters of circular knitting and covering yarn factories in the Xiaoshan-Shaoxing area, are experiencing a slowdown in order intake and prefer to purchase raw materials on a need-to basis rather than stockpiling. This reflects both the traditional off-season rhythm—where high summer temperatures lead to production cuts or holidays at some mills—and the uncertainty of export orders, which makes companies prioritize cash flow management. While 20D and 30D spandex, as core inputs for stretch fabrics (e.g., yoga pants, sports bras), have limited impact on end-brand costs, the profit sensitivity at the weaving stage is extremely high.
Regional Perspective: The Barometer Effect of the Xiaoshan-Shaoxing Industrial Belt
As the bellwether of the national spandex market, price movements in the Xiaoshan-Shaoxing area in Zhejiang often signal broader industry trends. This region accounts for over 40% of national spandex capacity and is supported by a large downstream cluster of knitting and warp knitting industries. The current market consolidation essentially reflects an inventory destocking process across the entire supply chain—from spandex mills to fabric producers to dyeing and finishing plants, each link is digesting previously built-up stocks. The 40D variety falling into the 28,000 RMB/ton range is approaching the marginal cost line for some small and medium-sized spandex enterprises, which may accelerate industry consolidation.
Market Outlook: Narrow Fluctuations to Continue, Focus on Cost and Order Inflection Points
Overall, the spandex market lacks a clear driver to break the stalemate in the short term. If costs continue to decline, spandex prices may have room to follow; however, if raw materials stabilize, current prices may find some support. The variable on the demand side lies in the recovery pace of export orders—procurement for autumn/winter garment fabrics in European and American markets typically starts in August-September. If orders pick up then, spandex prices may stabilize or even rebound. For buyers, while current prices are not absolute lows, they are within the low range for the year. A phased purchasing strategy may be more practical than waiting for the 'bottom.'