the whole spandex value chain entered capacity expansion peak

The growth rate of capacity of BDO, PTMEG and spandex was all near 20% and hit multi-year new high. However, demand for spandex saw rare negative growth as the consumption of textiles and apparels lacked upward momentum. The promotion of biodegradable plastics was slow with slower growth rate of GDP. Upstream market also encountered strong supply but weak demand. Some feedstock suppliers cut price for promotion amid unbalanced supply and demand. Price of PTMEG and BDO accelerated reducing in Jul. With stronger risk-aversion mindset, spandex companies cut run rate