25 March 2010
Spandex (or elastane) prices are now stabilized in China, far from the expected surge. Demand is weak from downward processors of the textile industry. Raw material costs of spandex makers may rise in April after BDO prices rebounded on the global market.
Spandex market prices surprisingly stabilized in the last two weeks in China.
Demand was weaker than previously expected although downward textile plants have raised operating rates after lunar year holidays.
Price pressure is probably limiting the current interest in spandex which is considered an expensive fiber.
Spandex inventories were recently increased at textile plants and need to be digested before higher prices are accepted.
Sellers are refusing to lower their prices at the same time.
Average price for 20D remains at 77,000-78,000 yuan per metric ton, with sharp differences between locations and qualities.
30D is offered at 66,000-68,000 yuan per MT, on average.
40D is stuck at 55,000-56,000 yuan while 140D reached 50,000-51,000 yuan.
Raw material costs of spandex makers will possibly rise in the short term with PTMEG expected to climb.
BDO prices are increasing in North America and Europe over stronger demand from THF producers, the last step before PTMEG in the spandex chain.