Spandex: How Long Is The Darkness Before Dawn?

The increasing number of products that touch bottom products and the trend of loss enlargement, as well as the sustained high level of cost surface, are pushing the majority.

According to the above picture, after a period of steady maintenance by many suppliers, the price system showed a relatively stable trend in the early June. However, some manufacturers were forced to operate at low levels of high inventory and low expectations, especially when the manufacturers tried to stabilize the purchasing intentions of some dealers and weaving factories. Some suppliers, especially the individual strength brand discount operation, started again, but the price of the center still fell from time to time.

How long does spandex go in the current "night" state? Naturally, it should be analyzed from all aspects affecting its operation.

Cost: although one of the raw materials is pure MDI, the selling price of the main raw materials, such as slurry and shoe sole, has shrunk, as well as the increase of its own production. The price of the raw material has been downgraded continuously. However, the main raw material PTMEG has basically been leveled off due to the fact that the strength suppliers are only slightly down and the attitude of the high-end suppliers is strong. The market outlook is expected to be due to the unexpected shutdown of the BASF German device in early June, and the May due to continuous fire and other low price operation of the Formosa Plastics and South Asia devices. The price expectation of the supplier has been swept away.

Therefore, spandex wants to lower the cost to solve the urgent need, but it is also strong after the market price stability mentality.

Supply: Although the high capacity expansion of spandex industry started last year, many manufacturers are worried about the business outlook this year, but the expected impact is also partly to be magnified by the industry. The key point is due to the poor market environment. Many enterprises have deliberately postponed the production date. On the other hand, they came from the equipment suppliers. Because of the centralized expansion of their suppliers last year, some enterprises originally planned to invest in the beginning of this year because the equipment was not in place and the uncertain period was postponed.

Circulation source: Although there is a higher inventory status in the whole production area, at the same time, the huge intermediate links between traders and distributors on the supply side are due to empty and cautious psychology. Many of them are operating near "zero inventory", and near the implementation period of the power restriction policy in Jiangsu and Zhejiang provinces, with the current operating conditions such as no profits or even losses, Spandex Enterprises' operation has been partially started, and the trend has gradually increased. Especially the total volume or half of the capacity will reach about half of the domestic production capacity, but will affect the actual output of the spandex field in a down-to-earth manner.

　　需求面：中间商、织造厂因订单不足，预期差，风险高等采取一系列的规避措施，令各自均保持极低库存状态，此一空间虽已有相当量存在，但缺少终端的订单及信心支持；而当前的下游，处于习惯的产销淡季，令终端商谈氛围的依旧不足，但上半年转单东南亚的部分欧美客户重新开始跟国内一些企业商谈迹象的出现，主原料棉纱、涤纶等产品售价不断下跌之后的趋平走稳，甚至个别小幅反弹，氨纶也在生产商触底后部分厂家基本售价操作渐趋坚挺下表面走平，尽管难以对下游需求形成十分有效的刺激，但却已推动部分中间商、实力织造厂开始询盘，试探性采购或个别补仓操作的出现，使整个下游处于一种仅缺终端批量订单出现的采购等待状态。

It seems that in view of the current market environment, the only thing that the producer needs to do is to reduce the output in succession according to the plan. The only thing that can be done is the "force", the "work of the people" in Shanghai and the "death resistance" of the people of Beijing.

If the textile industry itself does not have much problem, dawn will surely come, especially when a bright light is not visible.

This is the darkness before dawn.