Huatai Securities says spandex prices and company margins were pressured from 2022 by sustained capacity additions. With the current expansion cycle ending, exit of inefficient capacity and rising elastic-apparel demand and spandex penetration, supply-demand began to improve from 2025. Early-2026 inventory drawdown combined with geopolitically driven cost pressure triggered a sharp price rebound; as feedstock costs later eased, industry price spreads widened. Huatai expects limited new capacity

Huatai Securities says spandex prices and company margins were pressured from 2022 by sustained capacity additions. With the current expansion cycle ending, exit of inefficient capacity and rising elastic-apparel demand and spandex penetration, supply-demand began to improve from 2025. Early-2026 inventory drawdown combined with geopolitically driven cost pressure triggered a sharp price rebound; as feedstock costs later eased, industry price spreads widened. Huatai expects limited new capacity and steady demand to push spandex toward a supply-tight market, supporting further price and spread expansion.