Core Viewpoint - The demand for spandex is expected to continue growing due to the expansion of application areas and the increasing proportion of spandex in downstream fabrics [1] Group 1: Demand Trends - In recent years, the demand for spandex has shown two major trends: continuous expansion of application areas and an increasing proportion of spandex in downstream fabrics [1] - The downstream demand for spandex is expected to remain stable in 2024, with further growth anticipated as applications expand [1] Group 2: Differentiated Spandex - Differentiated spandex is expanding its application areas from simple knitwear to various fields such as automotive interiors, medical bandages, health products, and artificial organs [1] - The production proportion of differentiated spandex in China is approximately 23%, while developed countries have a differentiation rate as high as 60% [1] - The application of differentiated spandex is expected to open up broader demand space [1]

Core Viewpoint - The current expansion phase of the spandex industry is nearing its end, with future capacity additions concentrated among leading companies, despite a low demand environment in 2024 [1][4]. Industry Overview - The global spandex production capacity is projected to grow from 203,000 tons in 2000 to 1,750,000 tons in 2024, with a CAGR of 9.4%, and over 90% of this capacity is concentrated in Asia [3]. - China's spandex industry has experienced rapid growth, expanding from 89,000 tons in 2003 to 1,350,000 tons in 2024, with a CAGR of 14% [4]. Demand Trends - China's spandex consumption is on the rise, with apparent consumption increasing from 121,000 tons in 2005 to 1,012,000 tons in 2024, reflecting a CAGR of 11.8% [5]. - The demand for spandex is driven by trends in fashion and comfort, with applications expanding into various sectors, including automotive interiors and medical supplies [5]. Production Cost Structure - The cost of raw materials accounts for approximately 40% of spandex production costs, with PTMEG and pure MDI being the primary raw materials [2]. - The control of non-raw material costs is a significant source of competitive advantage for spandex manufacturers [2].

Group 1 - The core viewpoint of the report is that China's spandex supply is highly concentrated, and current prices are at a relatively low range [1] - The demand for spandex has been growing rapidly in recent years, with continuous improvement in downstream penetration rates [1] - The apparent consumption of spandex in China was 121,000 tons in 2005, and it is projected to grow to 1,027,000 tons by 2024, resulting in a CAGR of 11.9% from 2005 to 2024 [1] Group 2 - The report emphasizes the importance of focusing on listed companies that are positioned on the left side of the cost curve in the context of the "anti-involution" trend [1]