The declining trend persisted into the fourth month of the current year. The Chinese FOB price for 30D Spandex was noted at $4.60 per kg, and the domestic prices at 30.8 Chinese Yuan ($4.25) per kg in mid-April 2024. The product has lost up to 65 per cent of its value since late 2021 when it peaked due to strong demand.

According to Fibre2Fashion's market insight tool TexPro, the FOB price of the product had reached a high of $12 per kg in the first week of January 2022. It had seen a high level in the last quarter of 2021. The prices began to decrease in January 2022. Spandex of the said variety had slipped by 50 per cent, coming down to $6.05 per kg by December 2022. It continued to fall and reached $4.87 per kg over the next year. The decline trend remained intact, and the price came down to $4.6 per kg in mid-April 2024.

Similarly, the Chinese domestic price of spandex had reached as high as $14.12 per kg in September 2021. It started to ease in December 2021. It lost around 64 per cent of its value, coming down to $5 per kg in the last week of December 2022. The raw material further eased to $4.56 per kg by December 2023. Its price further dropped to $4.25 per kg by mid-April 2024, as per TexPro.

It is important to note that the garment industry had seen robust demand from across the world until 2022. Following COVID in 2021, garment demand had exploded in several countries, fuelling the demand for spandex as it is used in stretchable garments. However, over-stocking, high inflation, and economic uncertainty amid the economic ramifications of the Russia-Ukraine war and later Israel’s attack on Gaza increased unease in economic and business activities.

According to media reports, the closures and reopening of manufacturing plants have also influenced the price fluctuations of spandex. However, the upstream industry remains highly optimistic about the demand for spandex, driven by the increasing popularity of stretchable garments in several countries.

Fibre2Fashion News Desk (KUL)