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The price of spandex has stepped into the choice of advance and retreat due to the rise of raw materials

this year's spandex industry has not presented a dazzling scene. Although Spandex Enterprises successfully turned to profit through mutual coordination in September, and their dried pockets were enriched after the National Day holiday, the happy time was not long. Due to the impact of factors such as the rise in the price of raw materials, the total amount and speed of many expected orders fell significantly, and the enthusiasm of downstream companies to purchase spandex fell sharply, and even some bearish mentality appeared. Spandex manufacturers are re entering the price "retreat and advance" choice zone

retreat and advance may not be difficult for other industries, but spandex is known as "monosodium glutamate" in the field of textile and chemical fiber. On the one hand, this particularity makes the sales situation largely controlled by intermediaries, on the other hand, when the price fluctuates, the controllability of manufacturers is greatly reduced. Therefore, after the market changes, wait-and-see has become a relatively common means of operation

the contradictory relationship between the advance and retreat choices of Spandex Enterprises can be analyzed from several aspects

first of all, from the perspective of cost, PTMEG, as an important raw material of spandex, although the basic price has not changed significantly as of October, and has been maintained in the range of 25000 yuan to 26000 yuan/ton, the price of BDO, the upstream raw material of PTMEG, has been increasing recently, and has formed a relatively obvious upside down state at present. In the same period, spandex has also completed the improvement of profit level, so the intention to increase the price has become increasingly strong. Although pure MDI accounts for a relatively small proportion of spandex raw materials, whether the top of the force measuring piston is in the steel bowl is relatively small, but the high level of several consecutive months has followed up, coupled with the expectations of pure MDI production enterprise maintenance and downstream start-up, the price of spandex has a further upward trend. The general rise in raw material prices will form a high-level support for the fundamentals of spandex

secondly, from the supply side, under the strong power rationing measures in Jiangsu and Zhejiang, more than half of the domestic spandex production capacity has been overhauled. In August, these production capacities have resumed production and entered the stage of total recovery. Some new production capacities (such as the 20000 t/a project of Huahai group, the 3000 t/a project of Yantai spandex, and the 1000 t/a device of Huai'an Qiaoxin) are also close to the time of production, which greatly improves the future supply expectations. Through the two price increases in late September and early October, the spandex enterprises successfully transferred their inventory to the matters that need to be checked for the use of the steel wire rope universal tensile strength tester. Downstream dealers and weaving factories, all manufacturers maintained a low level or even some batch numbers were out of stock, which stabilized the sales mentality of the Spandex Enterprises to a certain extent

finally, from the perspective of sales and demand, since entering the peak season of textile production and sales this year, both export and domestic demand have maintained a strong upward trend. Affected by this, most manufacturers hoarded supplies in late September and early October by increasing cash purchases and signing batch supply contracts with advance payment. With the continuous change of the RMB exchange rate, the main textile raw materials such as cotton yarn and polyester continue to rise at a high level

however, the price of end products did not follow up effectively, which directly forced many enterprises to reduce the amount of order contact. Some small and medium-sized enterprises avoided further capital investment by reducing the operating rate. Spandex purchasing enterprises also shifted to the application of early preparation and purchase on demand. After losing the support of terminal demand, the operating mentality of spandex dealers will also weaken significantly

according to the comprehensive analysis, in the short term, spandex production enterprises may further raise the price under the influence of higher costs and the slow rise of low inventory levels, but the sluggish terminal demand and the rapid recovery of the total supply with the advantages of high measurement accuracy, especially the centralized release of the newly-built jc/t907 (2) 002 "concrete interface treatment agent", will bring pressure on the operation of Spandex Enterprises. Therefore, maintaining stability and waiting may become the attitude commonly adopted by Spandex Enterprises in the near future

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