Spandex market weak-but stable amid higher cost but lackluster demand

Entering September, the spandex market is in a phase of tug-of-war between traditional September peak-season expectations and a relatively weak downstream reality. In addition, the trend of the main raw material PTMEG and further upstream BDO and methanol remains firm, but spandex prices are fluctuating within a narrow range. The spandex industry chain is showing a pattern of strong upstream but weak downstream. The mainstream price for spandex 40D is at 28,500yuan/mt, with supply of 40D locally tight, while supply of 20D and 30D is relatively loose, and the price spread between 20D and 40D specifications has narrowed.

Supply: Rising operating rate

China's current spandex capacity stands at 1.6075 million tons/year. The overall industry operating rate is running at 80% or above. The average operating rate of leading producers with capacities exceeding 200kt is above 90%, with some individual producers raising their rate in the latter part of Q3. The average operating rate of several other spandex plants is around 60%. Overall spandex supply remains relatively ample, with some localized price-cutting to move cargoes.

Demand: Limited downstream recovery

Downstream demand remains the biggest constraint on the current market. Although the traditional textile peak season has arrived, the actual pace of downstream recovery has fallen short of expectations. Downstream autumn/winter fabric orders have followed up to only a limited extent due to high raw material prices, with weaving operating rate mostly maintained and some localized slight increases. Operating rate for warp knitting in Guangdong, core-spun yarn in Zhangjiagang, air-covered yarn in Xiaoshao and Shengze, and conventional covered yarn in Zhejiang is at 60–70%; warp knitting mills in Haining are at 80%; circular knitting plants in Jiangsu, Zhejiang, and Chaozhou and Shantou from Guangdong is at 40–50%; circular knitting mills in Foshan and lace mills in Fujian are at 30%. Grey fabric order increments at weaving mills are limited, with domestic autumn/winter fabric stockpiling slower than in previous years, while export orders have performed slightly better. Affected by rising raw material prices, downstream weaving mills have become more risk-averse, focusing on make-to-order production, with weak willingness to actively restock, which constrains the quality of the traditional peak season. If order follow-through remains poor amid high raw material prices, weaving mills will be cautious about building inventory, and some may face the prospect of reducing operating rate or shutting down for holidays during the Mid-Autumn Festival and National Day.

In August, domestic textile and apparel sales were weak while exports were strong, with the divergence remaining pronounced. In August 2026, retail sales of clothing, footwear, hats, knitwear and textiles amounted to 101.3 billion Yuan, down 0.5% year-on-year. For January-August, cumulative retail sales of clothing, footwear, hats, knitwear and textiles reached 961.5 billion Yuan, up 5.1% year-on-year. In January–August 2026, cumulative textile and apparel exports totaled US$203.31 billion, up 3.1% on the year, of which textile exports were US$98.03 billion, up 3.7% year-on-year, and apparel exports were US$105.28 billion, up 2.5% year-on-year. In August, textile and apparel exports were US$28.57 billion, up 7.7% year-on-year and down 0.8% month-on-month, of which textile exports were US$12.69 billion, up 2.4% year-on-year and up 2.8% month-on-month, and apparel exports were US$15.88 billion, up 12.3% on annual basis and down 3.5% over last month. The significant rebound in August apparel exports was mainly driven by Christmas stockpiling in Europe and the US; however, upstream fabric and textile exports were relatively weak, with orders more concentrated in finished apparels.

Spandex cost shows firm trend, 40D price spread slightly compressed

On the cost side, the main raw material for spandex production, PTMEG, is expected to trend firm, with further upstream BDO and methanol showing notable gains. BDO prices have risen significantly, putting heavy cost pressure on PTMEG, and sellers are mostly seeking price increases, with the magnitude of increase expected to widen next month. Meanwhile, spot prices for MMDI have edged up slightly. The cost for spandex's main raw materials is expected to remain firm. Spandex producers still enjoy relatively good profitability, but recently the BDO–PTMEG–spandex industry chain has shown strength upstream and weakness downstream, with the price spread between spandex 40D and its main raw material slightly compressed. Nevertheless, most spandex producers maintain positive profits. The extent of further raw material price increases still deserves close attention.

Market outlook

Looking ahead, driven by the sharp rise in PTMEG, the main raw material for spandex, and further upstream BDO and methanol, cost-side support is becoming more prominent. On the other hand, downstream order follow-through has fallen short of expectations, circular knitting demand has been lackluster, and overall domestic demand pull is limited. The spandex industry's overall operating rate remains above 80%, showing a trend of repair and recovery. The tug-of-war between rising costs and the difficulty of passing on costs to downstream weaving is intensifying. Spandex prices are expected to remain weak but stable in the short term, competition among spandex producers persists, and there is still room for downward negotiation on large-volume orders.