Spandex slumps as polyester, nylon prices fluctuate

Synthetic fiber markets have seen a sharp disparity in 2024. While polyester and nylon prices have fluctuated due to supply chain dynamics and seasonal demand, spandex has dropped amidst intense competition.

Polyester and nylon saw price increase early in the year, driven by factors such as seasonal demand and rising input costs. However, these gains were short-lived as market conditions softened. Spandex, on the other hand, has been on a consistent downward trajectory, reaching historic lows.

The disparity is rooted in supply and demand imbalances. Polyester and nylon have relatively stable production capacities, while spandex production has surged in recent years, outpacing demand. This oversupply has led to fierce competition and price erosion in the spandex market.

Additionally, the cost dynamics of raw materials contribute to the divergence. The primary components for polyester and nylon are linked to crude oil prices, causing price volatility. In contrast, the key raw material for spandex, PTMEG, has suffered from oversupply, resulting in sharp price declines.

As a result, spandex manufacturers face significant challenges. While polyester and nylon producers have managed to stabilize prices, spandex players continue to grapple with falling revenues and profit margins. The industry is undergoing a period of consolidation as weaker players exit the market.