Operating rate of spandex market is expected to remain high in December. Supply will touch yearly high, but demand may diminish temporarily. As per CCF Group, the diversification between supply and demand is likely to enlarge. Supply of spandex is estimated to gradually become normal and the delivery of substantially less varieties will need to queue. Trading under high price and small lots is supposed to reduce. Price is anticipated to be negotiable for some large lots.
 

Recently, rigid demand for spandex turned muted after downstream plants witnessed diminishing orders and slightly cut run rate. Some dealers also reduced replenishing. Supply tightness of spandex has been eased slightly and stocks started mounting, while overall stocks on spandex market remained low. Price of some spandex 20D and 30D was high boosted by seasonal demand, while that of 40D/70D/140D inched down amid falling orders. Price of spandex hiked by around 40 percent compared with the bottom level and started shivering at high level in Dec., even moving down in some regions.

 

In view of supply, spandex market entered prosperous cycle after Q3 with soaring price and greatly improving profit. Most units kept running at high capacity, excluding some old units to be eliminated. Current operating rate of spandex market was at 93 percent and is supposed to remain high in December supported by low stocks and high cash flow. Monthly production of spandex may hit yearly high in Dec.

 

Demand for spandex tends to weaken and sales were mainly driven by rigid demand now. Operating rate of spandex downstream mills accumulated to historic high in Sep.-Nov. as local and export orders for thermal fabrics, fabrics for sportswear, yoga clothes and bedding etc. were hot. However, mills concentrated on delivering in November, but orders for spring wear and summer wear failed to chase up sufficiently.

Source: fashionatingworld.com