In mid-Aug, the National Development and Reform Commission issued a notice entitled “The completion of the double control targets for energy consumption in the first half of 2021 by region”. The influence on spandex and downstream fabric manufacturing market was analyzed below. Zhejiang, Jiangsu, Guangdong and Shandong missed the energy consumption intensity reduction target and the total energy consumption target. The operating rate of downstream fabric mills started decreasing obviously from late-Jul with scarce orders and tended to fall. The operating rate of circular knitting plants dropped to 30-40% in mid-Sep from 70% in early-Jul in Chaozhou and Shantou from Guangdong province amid high stocks of cotton/spandex products.
High-density knitting machines have apparently risen in recent 2 years due to hot demand for yoga and sports. Downstream plants were cautious in hoarding up stocks when downstream capacity expanded unorderly and spandex price kept high.