Operating rate slanting low at the end of year

Spandex capacity was at 1121.5kt/year in Chinese mainland now, up by 15.4% on annual basis. The yearly run rate of spandex producers will obviously descend. Current operating rate of spandex plants has fallen by 24 percentage points over early-Q4 to 59%. With subdued domestic and export demand, spandex companies controlled run rate at the end of year. On one hand, some new spandex units from leading companies cut or suspended production with muted demand. On the other hand, some leading companies slashed run rate or suspended production due to stagnated sales of some varieties. Apparently more small and medium-sized companies curtailed or stopped production. The inventory of spandex was substantially depreciated in end-Q2 and Q3. Spandex producers controlled the inventory of finished goods and feedstock when price of PTMEG kept reducing. Most purchased PTMEG to cover the pressing demand.