Spandex market operation in H1 2026

*Since H2 2025, spandex market has completed a cycle of bottoming out and saw a noticeable improvement in industry prosperity.

*Prices rose much in Jan-Apr but consolidated since May, and the price spread widened.

Since the second half of 2025, the spandex market has completed a cycle of bottoming out and industry floor elevation, with a noticeable improvement in industry prosperity. While spandex enterprises still faced widespread losses last year, the reduction and suspension of aging equipment increased. However, downstream demand, such as knitting, remained decent in the second half of the year, leading to a significant destocking in the spandex industry. In 2026, the spandex industry started with low inventory and historically absolute price bottoms. With the onset of the US-Iran war driving significant price increases in the energy and chemical sectors, mid-to-downstream rigid demand and stocking needs for spandex increased. Consequently, spandex prices saw a notable upward trend from January to April. From May to June, the market shifted to a consolidation phase. By the second half of June, some brands saw slight price adjustments downward. Overall, spandex products performed relatively strongly among chemical and cotton fibers in Q2.

Price: Significant rise in Jan-Apr, consolidation in May-Jun

Spandex prices in mainland China rose significantly in H1 2026. The average prices for 20D, 30D, and 40D were 29,805yuan/mt, 28,805 yuan/mt and 26,373 yuan/mt, respectively, representing year-on-year increases of 8.9%, 9.3%, and 10.5% respectively.

In Q1 2026, spandex prices rose on a monthly basis. The price increases in Jan-Feb were relatively moderate. Driven by supply-demand fundamentals, historically low prices, prolonged industry losses, and continuous destocking by suppliers last year, distributors actively stocked up before the Spring Festival, with some direct-sales customers securing inventory until mid-March. Following the outbreak of the US-Iran conflict, energy and chemical prices surged. The prices of primary upstream raw materials, PTMEG and MMDI, increased significantly, providing strong cost-driven support. With limited supplier inventories and a rise in tight batches, the price increase for spandex expanded in March. Conventional products like 20D, 30D, and 40D mostly achieved a price increase of 2,300yuan/mt. Compared to the end of the previous quarter, the cumulative price increase for 20D, 30D, and 40D reached 3,000yuan/mt, representing QoQ increases of 11%, 12% and 13% respectively.

In Q2 2026, spandex prices experienced a consolidation phase after a major rally. In April, prices continued to surge, with conventional specifications rising by 3,000yuan/mt for the month. In May, the market shifted to consolidation. In June, profit-taking by some brands and traders led to noticeable price pullbacks, especially for 20D, fine-denier, and 30D products, due to reduced production of lightweight fabrics by weaving mills and relatively high production by spandex factories. Driven by expectations of a US-Israel agreement, downstream sentiment turned bearish on main textile raw materials, causing PFY and NFY prices to pull back. Downstream buyers mostly adopted a rigid-demand or destocking approach. Spandex suppliers saw a steep accumulation curve and a noticeable rise in inventory. While mainstream brand prices remained stable, partial prices saw slight adjustments, with 20D and 30D experiencing more noticeable pullbacks. By the end of Q2, the QoQ price increases for 20D, 30D, and 40D ranged from 2,500 yuan/mt to 3,000 yuan/mt compared to the end of the previous quarter.

Price spread: Widening spread

In the first half of 2026, the prices of primary raw materials, PTMEG and MMDI, both peaked and fell back. PTMEG prices rose by about 1,000yuan/mt before slightly retreating, ending the mid-year period with a 500 yuan/mt increase compared to the end of last year. MMDI prices saw a significant pullback after a major rally. Meanwhile, the price of spandex 40D remained basically stable after the major rally, resulting in a widening spread and a noticeable improvement in corporate profitability in Q2.

Operation: V-shape trend inventory and slowly rising operating rate

In H1 2026, the average inventory of spandex was 29.6 days, a YoY decrease of about 20 days. The operating rate showed a deep "V" shape, with continuous destocking from Jan to Apr, and accelerated inventory accumulation after the second half of May, though current inventory remained lower than at the beginning of the year.

The average operating rate of spandex plants in H1 2026 was 85.2%, up 4.3 percentage points YoY. Spandex production increased significantly, with preliminary estimates showing a growth rate approaching 20%. A supply-demand pattern of robust production and sales emerged. New capacity put into operation in Q4 last year and released at the beginning of this year ran at high capacity in H1, driving a broad YoY increase in spandex output.