Around the spring festival of 2019, the spandex operating rate in China declined to below 80 per cent. Monthly operating rate of the spandex industry was at 79 to 83 per cent in the second half of this year, which was lower than the same period last year. The spandex industry operating rate is anticipated to gradually get close to around 80 per cent. In the third and the fourth quarter, spandex industry inventory continued to slowly fall. In the second half of this year, demand for covered yarn, warp knitting and double-faced circular knitting for spandex was considerable. Coupled with the shutdown and production reduction of old spandex units, the annual spandex output growth was extremely small compared with the same period of last year. Inventory of spandex plants hit a high at the beginning of the third quarter, and it was in a slow downward tendency at the end of the year, with an inventory drop of around ten days.

Spandex downstream weaving plants may collectively shut down for taking a holiday during the spring festival. Though spandex plants are likely to decrease the operating rate, the drop may be smaller than that of downstream. During the spring festival, inventory of spandex plants is anticipated to move up, which may restrict the growth in market after the spring festival.