Weekly Report: VSF/Spandex/Nylon（Apr.9th-Apr.13th）

The atmosphere of VSF rose after the stabilization this week. At present the leading quotation of VSF was around 16,200-16,400 Yuan/ton in the market, increased 200 Yuan/ton compared with last week. Now the transaction price of VSF was lower at 15,800 Yuan/ton, while the higher was 16,200 Yuan/ton. The manufacturers executed the pre-contacts and the inventory pressure declined than before due to the greater demands of air spinning in downstream yarn market, which pushed the increase of VSF price to some extent in the second half of this week. In the aspect of upstream market, the price of staple cotton linter and cotton pulp kept stable. Because the purchasing atmosphere was weak in the downstream, the operating rate of the manufacturers continued to be low. Parts of them switched their production to refined cotton and reflected that the profit was relatively good. In addition, it was affected by the increase of VSF price, the trading atmosphere of downstream spun rayon yarn slightly raised. Currently, the price of weaving 30S was around 19,500-19,700 Yuan/ton in Xiaoshan region, which increased 200-300 Yuan/ton compared with last week. It expects that VSF will keep the upward tendency, the transaction centre will move up step by step.

This week, the price of spandex continued to be dominated by stability and wait-and-see situation. The purchasing atmosphere was relatively low in the market. The quotation of upstream pure MDI generally increased, it adjusted to 19,000-21,000 Yuan/ton and the domestic price of PTMEG was around 26,500-30,000 or below. In the aspect of downstream market, the spandex manufacturer announced the intention of production curtailment, which pulled up some small orders, but the price was still stabilized. Ended by weekend, the leading sales rang of 20D was 56,000-61,000 Yuan/ton and the shipment price of 40D was 43,000-46,000 Yuan/ton, and the atmosphere of inquiry was still weak in overall market. It expects that the transaction atmosphere will improve after a boost of terminal orders. But there were still more low-price products in spandex market, the supply was sufficient. The lack of upward momentum for merchants would make the market still in low consolidation.

CPL was in weak consolidation, which made the sale price also dropped in nylon market. The demand range kept the cautious attitude and the transaction was mild in the market. The backup of the cost in upstream nylon chips market was inadequate, so the price was still weak. The price of conventional spinning chips was around 22,200-22,800 Yuan/ton. The negotiating price of the high-speed spinning semi-bright chips was around 23,200-24,300 Yuan/ton, the price was a little lower in Jiangsu, now the cash price of it was around 22,500-22,800 Yuan/ton, the higher price in Zhejiang was more than 23,000 Yuan/ton. The loosening sign of the price was not obvious and the price was stabilized. As for downstream market, the negotiating price of semi-bright nylon chips FDY70D/24F was around 28,500-29,000 Yuan/ton, the medium POY85D/24F was around 28,300-28,500 Yuan/ton this week and the transaction price of high-end DTY70D/24F was around 32,000-32,500 Yuan/ton. It expects that CPL price will be still mild in aftermarket and the price of some nylon chips will continue to slide slightly.