Spandex prices have slightly risen in the last four weeks, over a seasonal rebound of downward textile production. BDO and PTMEG prices have stayed frozen, but MDI prices have sharply rebounded.The level of spandex prices in April-May will depend on a series of factors which are below analyzed.
Spandex prices are staying firm in China, after they have bottomed in the weeks following the end of lunar year holidays.
Benchmark 40D bright has gained 1,000 yuan in the last four weeks, up 3% at 34,000 yuan per metric ton.
Operating rates have been increased at spandex plants from 80% to 90%, therefore limiting any additional rise of prices.
On the other hand, raw material prices have stayed firm or even rebounded.
With BDO prices being frozen in the Far East, PTMEG pricers have not really moved, slightly increasing in the last days however.
By contrast, MDI prices have sharply rebounded in the last four weeks, as reflected by our below chart.
As a result, spandex producers may be tempted to raise their price offers, therefore benefiting from the seasonal rebound of textile production in March and April in China.
With May Day holidays looming, demand may rapidly drop, nevertheless.
In addition, new spandex capacities have been added in the last months, benefiting from lower production costs and therefore able to avoid any new rise of their price offers.
Source: Emergingtextiles
