The divergence between supply and demand enlarges recently on spandex market. Operating rate of fabric mills decreases and rigid demand for spandex turns slower. Some buyers are still consuming spandex prepared before. Spandex suppliers see increasing selling pressure in Jul. By Jul 26, the stocks of spandex have accumulated by around 5.4 days to 39 days over end-Jun. Buyers show sidelined attitude toward spandex market and only purchase to cover the pressing demand.

Operating rate of fabric mills declines in Jul during the traditional dull season. Operating rate of covered yarn plants inches down to around 60% and covered yarn plants face slower sales during off-season. The run rate of circular knitting plants is at 40-50% in Zhejiang and Jiangsu, at 20-30% for plants in Foshan, Guangdong and above 60% for plants in Chaozhou and Shantou from Guangdong. Single-faced machine mainly produces milk yarn and printed fabrics. The production of double-faced fabrics is relatively better but large orders are insufficient and plants mainly manufacture thermal fabrics like dralon fabrics. Operating rate of warp knitting mills is high, mainly around 60-70%. The run rate of warp knitting plants is above 70% in Guangdong and factories focus on producing polyester/spandex fabrics for swimwear and polyester dull plain fabrics which occupy less capital. The run rate of warp knitting plants is near 60% in Haining.