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Spandex market to maintain upward cycle in 2010
09
Apr '10
Spandex price rose again in the last week of March, 40D variety increased by 1,000 Yuan per ton to 57,000 Yuan / ton and 20D also advanced by 1,000 Yuan per ton to 82,000 Yuan / ton. Market experts expect spandex to enter into an upward cycle in 2010.

Analysts point out that the recent upward demand from downstream processing enterprises has lead to stability of spandex prices, while at the same time; some of the downstream producers are placing fresh orders, which have led to an upward movement of spandex prices.

Analysts believe that, once the current spandex inventory with processing enterprises gets exhausted in early April, spandex prices will have more room for growth in the second quarter; which makes analysts optimistic about the spandex market in the short term.

However, it is noteworthy to note that, new capacity addition in spandex industry will be about 40,000 tons after the third quarter, which is about 12 percent of current capacity. Analysts believe that the release of this new capacity could have negative impact on spandex prices, fourth quarter onwards.

Fibre2fashion News Desk - China

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