Spandex prices are falling in China. As per CCF Group, there has been a 17 per cent fall in spandex prices from August-September 2021 to mid-December 2021. The price spread between spandex and its major feedstock has been close to the level it was in early 2021.

In addition, spandex stocks increased to above 20 days and will tend to rise further. Downstream plants will observe the spring festival holidays from January. Spandex companies are estimated to have higher stocks with modest demand. Spandex enterprises are likely to control production amid weaker demand, mounting stocks and high costs.

Some plants have already started scaling down operations. Some plants may even start reducing output before the spring festival holidays when price is close to the cost line, inventories are piling up and the feedstock market is stable and firm. Meanwhile, the launch of new units which are scheduled to start operation in the first quarter of 2021 may be postponed.

Spandex exports from China were up 32 per cent from January 2021 to September 2021. Compared to 2019 exports were up by 29 per cent. Zhejiang, Jiangsu, Guangdong, Chongqing, Henan and Shandong are the major export suppliers of Chinese spandex.