Hyosung Spandex (Ningxia) Co., Ltd. is the largest foreign-invested project in Ningxia and one of the 14 major projects planned and reserved by the Ningdong Base, each with a total investment exceeding 10 billion yuan. Recently, focusing on industrial transformation, the company invested 12 billion yuan to construct an annual production capacity of 360,000 tons of spandex and its supporting raw materials project. The project is being implemented in five phases, with the first and second phases already completed, achieving a spandex production capacity of 70,000 tons and a PTMEG production capacity of 100,000 tons. The third phase of the project commenced in May 2024, with a total investment of 1.8 billion yuan, involving the construction of a 72,000-ton/year differentiated spandex production line, which was fully operational by December 2025.

PriceSeek Analysis:
Spandex, Bull-Bear Score: -1
The article indicates that the third phase of Hyosung Spandex’s project has added an annual production capacity of 72,000 tons, bringing the total capacity to 142,000 tons. The significant expansion on the supply side will intensify market competition and exert downward pressure on spot prices. Although there is no directly corresponding futures contract at present, the shift toward a looser supply-demand balance in the spot market is clear, representing a general bearish factor.

PTMEG, Bull-Bear Score: 0
The project includes a 100,000-ton PTMEG production capacity, with no expansion plans mentioned. As a raw material for spandex, its demand is supported by the increase in spandex production. However, the marginal demand boost for PTMEG from the new spandex capacity is limited, and there is no additional supply pressure, resulting in a neutral impact on spot prices.

1,4-Butanediol (BDO), Bull-Bear Score: 0.5
As a core raw material for PTMEG, its demand chain is influenced by the expansion of spandex production capacity. The settlement price of the ethylene glycol futures main contract 2605 (Dalian Commodity Exchange) is 3,950 yuan/ton, with daily open interest increasing by 7,950 lots to 369,000 lots, reflecting stronger market expectations for raw material demand. Combined with the stable operation of PTMEG production capacity on the spot side, this provides mild support for BDO prices, representing a slight bullish factor.