Supply of PTMEG for spandex remained tight in Q3 and the supply crunch tightened further in Aug as some units had turnaround. Although downstream market was difficulty in transferring cost, price of PTMEG slightly rose bolstered by good supply and demand. The settlement price of PTMEG in Aug was mainly implemented at around 20000yuan/mt, with some slightly higher near 20500yuan/mt. New PTMEG units are under trial production, while demand is stable and robust. Supply of PTMEG is estimated to remain tight in short run and price is anticipated to keep firm. Price of MMDI rose substantially in Aug impacted by the turnaround, with spot goods up by 3800yuan/mt over early-Q3. However, after supply recovered in some plants and downstream market met resistance in transferring cost, price of MMDI started reducing from late-Aug. Price of major raw materials of spandex both rose in Q3 while that of spandex 40D advanced slowly. The cash flow of spandex 40D continued decreasing and most spandex plants have seen apparent losses.