Base period: tight supply supports prices (February **)
Spandex trading on a tight-supply footing. At $*.*** per kg for ***D domestic China and $*.*** per kg for **D domestic China, this base reading reflects a market where available inventory was already constrained relative to order commitments, setting the stage for the sharp appreciation that followed.
Supply-driven price recovery; low inventories (April *)
By April *, ***D domestic China had risen **.* per cent to $*.*** per kg and **D domestic China had risen **.* per cent to $*.*** per kg. The FOB China grades moved more moderately at this stage: **D FOB rose *.** per cent to $*.***/kg, **D FOB rose *.* per cent to $*.*** per kg, and **D FOB rose *.* per cent to $*.*** per kg. This phase coincides with the initial wave of MDI producer price actions increase, followed by BASF&#**;s further $***/MT East Asia increase on March ** which pushed feedstock costs higher just as spandex inventories were thinning.
