Prices of conventional spandex are likely to remain high while those of tighter varieties are expected to see a slight increase. The prices of medium-to-coarse denier varieties of spandex are expected to fluctuate. As per CCF Group, prices of 20D spandex rose 6.3 per cent in Q2 2021 while those of 30D rose 2 per cent amid, mainly stimulated by high-density circular knitting market and fine covered yarn market. Prices of spandex 40D fluctuated while those of medium-denier spandex for lace knitting, etc declined 3.1 per cent or 2,000 yuan/mt. Sales ratio remained high and price of conventional varieties increased further although downstream buyers retreated to sideline. Price of medium-to-coarse denier spandex declined with slower sales.
Operating rate of spandex plants remained above 95 per cent in Q2.The market saw slightly increasing monthly production, hitting historic high. Downstream fabric mills continued running at high capacity in May. Production and orders for thermal fabrics increased, ending up with slightly higher run rate of some plants. As a result, rigid demand for spandex improved on the month.
Operating rate of circular knitting plants in Zhejiang, Jiangsu and Guangdong, lace knitting plants in Fujian, braid mills in Guangdong and conventional covered yarn plants in Zhuji and Yiwu was at 30-60 per cent and that of cotton core-spun yarn and air covered yarn plants in Zhangjiagang and warp knitting mills in Haining and Guangdong was at 70-80 per cent. . Price of upstream feedstock dipped recently and run rate of downstream mills declined compared with Q1. However, recent downstream demand for conventional spandex improved. Sales ratio increased with increasing local and export orders.
