Spandex Future Values Expected to Rise

PUWORLD(2012-2-15)--Textile and garment industries are in recovering period and there is also increase for spandex downstream plant operation rate. Insufficient export orders and demand for spandex is one of the major reasons. Sales condition is reasonable in Euro and American industry. Restock activity is expected to drive the demand for spandex. Price gap for Spandex and major feedstock is at the lowest level and the whole industry suffered the loss. Total inventory is also at reasonable level.

PTMEG supplies could be tightest in 2012

We predicted that new capacities for spandex for 2012 would be 57000tons per year and plant with capacity of 52000tons per year has already been finished. New capacities for BDO in 2012 could be 415000 and most of the plants will put into trial operation after May. For PTMEG, new capacity in China is only 46000tons per year from Sichuan Tianhua. BDO might be the industry with lowest growth rate in spandex chain.

There is increase for prices for PTMEG thanks to spandex industry

Operation rate for spandex industry is only 70% of that of peak point in the autumn of 2011. New plants haven’t run as a result of loss stance of the industry. As long as the downstream demand rose, the increase of spandex price will drive the operation rate of the industry. As Sichuan Tianhua’s plant would not be put into trial operation until May, PTMEG supply will be tight and price will go up in the short period.