According to the statistics of CCFGroup, operating rate of spandex downstream mills continues moving up after the National Day holiday, with that of covered yarn plants, warp knitting units, braid mills and circular knitting plants in Zhejiang, Jiangsu and Guangdong at around 60-90 per cent and that of lace knitting plants in Fujian and circular knitting plants in Foshan, Guangdong at around 50-60 per cent.
Operating rate of fabric mills is higher than anticipation after the National Day holiday. Sales of fabrics are smooth and even hot in some plants. Sound demand pushes up run rate of downstream mills to historic high. Order schedule can continue into H2 Nov in many fabric mills.
Affected by moderate demand since the middle of Q3, supply of spandex exceeded demand before but turned to behind demand at the end of Q3. Price of spandex climbed up mainly supported by surging downstream demand. In addition, ascending cost was another upward momentum.
Operating rate of spandex has been around 90 per cent now, but supply of conventional descriptions remained tight after earlier stocks decreased. Price increment kept increasing in the second half of Sep. Supply of spandex 20D-40D was tight. Stimulated by rising cost and low stocks, mainstream spandex companies such as Huafon, Xinxiang, Tayho, Huahai and Aoshen increased price by around 2,000yuan/mt from Oct 15 amid tight supply and restricted large orders.