Price of raw materials of textiles and apparels slightly declines

Price of BDO rebounded and then shivered. Impacted by it, PTMEG plants faced increasing cost pressure and were eager to raise price. However, spandex plants showed apparently looking-on mindset and downstream sectors were hard to transfer the cost. By convention, price of spandex is supposed to be difficult in rising from the fourth quarter to the Spring Festival. Spandex price has been hit historic low. How will it fare at the end of year?

Price of raw materials of textiles and apparels slightly declines

Price of raw materials of textiles and apparels largely edged up in the first half of Oct when the tension escalated in the Middle East at the beginning of fourth quarter and there was stimulus from macro environment. However, the uptrend did not last long. With collapsing cost and less-than-anticipated demand, price of raw materials of textiles and apparels moved down in recent one month. Price of PFY, NFY and cotton yarn fell by 2.9-5.6% and that of rayon yarn and spandex 40D was hemmed into a tight range. Spandex 40D was mainly pegged at 23500-25500yuan/mt, with some lower at 22500-23000yuan/mt and higher at 25500-28500yuan/mt for some medium-to-high end ones.