According to the price monitoring of SunSirs, the domestic spandex market price has remained volatile and upward in January. As of January 15, the average ex-factory price of 40D spandex is 43,500 yuan/ton, an increase of 5.07% from the beginning of the month, and a year-on-year increase of 36.36%. The industry’s operating start-up remains at around 90%, and manufacturers’ inventories are low. Affected by cost support and tight supply, factory prices continue to rise. Actual transactions need to be discussed in detail. However, the enthusiasm for purchasing goods in the terminal market is average, and the market sentiment is strong.
The raw material PTMEG market continues to be highly priced, and the current mainstream quotation for 1800 molecular weight sources is 19,500-20,500 yuan/ton. The actual price is negotiated at 19,000-19,500 yuan/ton. The industry’s operating rate is around 7.8%, maintaining stable operation. Specifically, during the shutdown of Yizheng Dalian’s 40,000-ton unit, the load of Sichuan Tianhua’s 46,000-ton unit dropped slightly, and the load of Chongqing Chiyuan Chemical’s 46,000-ton unit dropped slightly by about 70%. The decline in the pure MDI market has slowed down, and the supply of imported barrels is tight. Most holders have kept their offers steady. The current market reference price is 20,800-21,500 yuan/ton for wire transfer barrels. Some barrels are tight, and actual negotiations will prevail. Wanhua Chemical’s pure MDI barrel listing price in January 2021 will be 24,000 yuan/ton, which is 4,000 yuan/ton lower than in December 2020. The settlement price in December 2020 was 23,500 yuan/ton, a decrease of 4,000 yuan/ton from the previous month.
Some workers have a strong desire to return home. Everyone is cautious about the market in the first half of next year, and some manufacturers have handed over some early export orders, and the pace of production and sales is acceptable. The current operating rate in the circular knitting field is around 5.50% and running at a low level, while the operating rate in the warp knitting field is around 6.80%.
Business Club analysts believe that the positive support on the cost side has not diminished, the supply of spandex market is not yet abundant, some batch numbers are still tight, and inventories remain low, so prices remain high. However, downstream manufacturers are cautious. At the same time, as the Spring Festival approaches, demand may gradually decrease. Therefore, in the short term, the spandex market price will remain volatile and warm.
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