raw material

Crude oil: WTI closed at US $59.75/barrel yesterday, down US $0.89/barrel, or 1.47%; Brent closed at US $62.7/barrel, down US $0.99/barrel, or 1.55%.
40d spandex: yesterday, 40d spandex closed at 61000 yuan / ton, up 3000 yuan / ton, up 5.17%.

Supply and demand and mentality

The operation rate of spandex is about 90%, close to saturation state.

Recently, the spandex market remains at a high level, the supporting role of cost has increased, the supply of goods in the field is still tight, the demand of downstream customers can be followed up, and the overall market atmosphere is strong. The global textile network is expected to see high volatility in the spandex market in the short term.

Comparison of rise and fall of global textile net Market (Figure 1)

Global market trend of spandex Textile Network (Figure 2)

Global textile network analysts believe that although spandex as a derivative of the oil industry, but the price has always been different from the oil price, which has a certain impact on the supply and demand of spandex. First of all, the oil industry is very long, and it takes a certain reaction time to derive from spandex. Secondly, the spandex industry is concentrated and the leading manufacturers have a certain voice. China is the world's largest producer and consumer of spandex, with spandex production capacity accounting for about 70% of the world. But at present, there are only about 20 Spandex Enterprises in China, mainly concentrated in Zhejiang, Guangdong, Jiangsu, Shandong and other places. The most important thing is that the downstream of spandex is textiles, clothing and home textiles, accounting for 90-95% of the overall demand. At present, the prosperity of the weaving market has driven the high demand for spandex. In addition, the expanded production line of the spandex manufacturers in the head is still under construction, which leads to the fact that even though the oil price has dropped below $60, the spandex is still strong.
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