CCFG - July Spandex Feedstock & Fiber Market Report

M O N T H LY R E P O R T
July 2021
Tel: 86-571-83786504 Email: service@ccfgroup.com
July Spandex Feedstock & Fiber Market Report
I. Spandex Feedstock:
1.1 Market overview
Spandex feedstock price trend in 2019-2021
PTMEG RMB price BDO RMB price MMDI RMB price RHS: PTMEG USD price
$/mt
50000
yuan/mt 6500
45000
40000
5500
35000
30000 4500
25000
3500
20000
15000
2500
10000
5000 1500
Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21
Spandex feedstock prices

Unit Jun 2021 Jul 2021
PTMEG $/mt 5,210 5,000
Yuan/mt 38,129 36,800
MMDI Yuan/mt 19114 23,686
BDO Yuan/mt 17,326 21,582
Source: CCFGroup
Notice: MMDI price adjustment
Price of PTMEG for spandex Jul orders was stable. Mainstream resources were lower discussed at 36,300-
36,800yuan/mt and higher talked at 36,900-37,200yuan/mt, with some lower at 36,000yuan/mt. Price of imported
goods kept falling in Jul, mainly discussed at $4,980-5,020/mt, ex-ports. Buyers were active in purchasing while sellers
controlled sales volume.
CCFGroup Monthly Report July 2021
Supply of MMDI decreased affected by the force majeure of overseas units and the turnaround of Wanhua Chemical’s
unit in Yantai. There were fewer imported resources while downstream demand improved. Price of spot goods
substantially rose with scarce spot goods while declined slightly in end-Jul. By the end of month, discussing price of
MMDI was at 24,000-24,600yuan/mt in East China. Wanhua Chemical updated MMDI settlement price for Jul at
21,800yuan/mt, up by 2,300yuan/mt compared with last month.
1.2 Imports
PTMEG imports of China in 2020-2021

KT 2020 2021
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source : China Customs
According to the customs data, in Jun 2021, PTMEG imports was at 2,543mt, with a month-on-month decrease of
18% and a year-on-year reduction of 21.8% respectively. Average import price was $5.260/kg, down by $0.123/kg
on the month. Price of PTMEG under RMB basis declined. Buyers reduced purchasing amid high feedstock price and
their purchasing volume of imported goods started falling from May and extended lower in Jun. Imports from Taiwan,
China apparently decreased by 556 tons and those from Japan slipped by 58 tons.
FIGURE 2
PTMEG Imports in Jun, 2021
Jun-21
Volume (tons) 2,543
Average Price ($/KG) 5.260
Changes ($/KG) -0.123
Source: China customs
FIGURE 3
PTMEG imports by origin
Import origin Volume (kg) Value (USD) MOM change (kg)
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Taiwan China 1,887,230 10,044,373 -555,780

South Korea 460,040 2,511,896 57,490
Japan 192,595 793,443 -58,405
Germany 3,000 24,706 990
UK 0 0 -1,676
Total 2,542,865 13,374,418 -557,381
MMDI Imports of China in 2020-2021

2020 2021
16
14
KT
12
10
8
6
4
2
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
FIGURE 4
MMDI Imports in Jun, 2021
May-21
Volume (tons) 5,419
FIGURE 5
MMDI imports by origin
South Korea 3,519,860 9,152,542 -54,840
Japan 1,883,680 4,950,727 658,483
Germany 11,803 42,780 4,029
Spain 3,450 6,012 -1,150
Other 5 nations 0 0 -2,044
Total 5,418,793 14,152,061 604,478

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According to customs statistics, in Jun 2021, MMDI imports reached 5,419mt, up by 12.6% m-o-m and down by 62.6%
year on year. Monthly import average price was at $2.612/kg, down by $0.082/kg m-o-m. Imports of MMDI from
Japan rose by 658 tons and those from Germany slightly climbed up but those from South Korea dropped by 55 tons.
1.3 Market Outlook

Most PTMEG plants run at high capacity. Effective supply of new units remains limited. More new spandex units will
start operation and they will increase purchasing feedstock. Supply of PTMEG is tight in China and is short too outside
China due to the turnaround. Price of BDO hikes recently, ending up with higher cost for PTMEG. Price of PTMEG is
anticipated to surge in Aug and the increment will be big in Q3.
MMDI market enjoyed bullish stimulus from supply side. Rui’an’s PU unit will start turnaround in Aug. Imported
resources will be limited in short run. Temporary production suspension and low operating rate result into tight supply
of MMDI in short run. Downstream players show weaker acceptance with resistance to track the uptrend on feedstock
market. MMDI market is expected to be in deadlock in Aug and price may be in upward consolidation. Wanhua
Chemical updated MMDI nomination price for Aug at 23,800yuan/mt, up by 2,000yuan/mt compared with last month.
II. Spandex:
2.1 Market overview
FIGURE 6
Spandex price index
Unit: Yuan/mt 30-Jun-21 31-Jul-21 Change Change %
20D 92,000 102,000 10,000 10.9%
30D 82,000 90,500 8,500 10.4%
40D 71,500 78,000 6,500 9.1%
Source: CCFGroup
FIGURE 7
Spandex prices
China domestic prices (1000yuan/mt) 30-Jun-21 30-Jul-21
Spandex Specifications low prevailing high low prevailing high
20D* bare 89 90-93 93.5-95 99 90-105 105-107
30D* bare 79 80-83 83.5-85 88 88-92 93-97
40D* bare 69 70-72 72.5-75 76 76-79 79.5-82
70D bare 68 69-72 72.5-74 75 75-78 78.5-81
140D bare 63 63-66 67-70 68 68-72 72-76

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280D and above 64 64-66 67-70 68 68-72 72-78

China Export Prices (FOB, $/kg)
20D bare / 11.0-14.0 / / 11.5-15.0 /
30D bare / 10.3-11.9 / / 10.5 -12.6 /
40D bare / 8.7-10.7 / / 9.0-11 /
*Fully continuous polymerization process and Toyobo
*Export tax rebate: spandex 13%. Import tariff: spandex 5%, PTMEG 6.5% (MFN) or 3% (interim), MMDI (6.5%), TPU 6.5%.
Source: CCFGroup.com
Supply and demand of spandex was unbalanced in Jul. Operating rate of spandex plants was high, while supply
remained tight. Inventory of medium-to-coarse denier spandex also apparently decreased. Fabric mills’ demand for
spandex kept hot and dealers were active in selling. Overall supply of spandex was very low. Price of spandex moved
up obviously, with the increment of conventional spandex varieties 40-20D at 6,500-10,000yuan/mt or 10%.
Operating rate of downstream circular knitting plants, covered yarn mills and warp knitting units remained high in Jul,
but some plants slashed run rate with resistance in following the uptrend on spandex market.
Spandex price trends in 2019-2021

Yuan/mt 20D 30D 40D
105000
95000
85000
75000
65000
55000
45000
35000
25000
In early-Jul, supply of spandex remained tight. Spandex market was still sellers’ market. Price of spandex rose again.
In mid-Jul, most spandex companies revised up spandex from mid-Jul. Prevailing price on the market inched up.
Supply of spandex kept tight. Most suppliers guaranteed the rigid demand of downstream buyers at first. Some
dealers apparently adjusted up price with low stocks at hand.

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In late-Jul, price of conventional spandex increased by 3,000-5,000yuan/mt in leading companies and some
enterprises intend to raise price in early-Aug. Most downstream buyers only purchased to cover the most pressing
demand.
Price of conventional spandex rose a lot in Jul and the increment of spandex 15-40D was bigger. Price of medium-to-
coarse denier spandex inched up. By the end of month, spandex 20D was mainly discussed at 99,000-105,000yuan/mt,
higher at 106,000-110,000yuan/mt. 30D was mainly talked at 88,000-92,000yuan/mt, higher at 96,000-
100,000yuan/mt. 40D was mostly leveled at 76,000-79,000yuan/mt, with some higher at 80,000-82,000yuan/mt.
Sales of spandex for lace knitting were mainly stimulated by rigid demand. 140D-210D was mainly talked at 68,000-
72,000yuan/mt, higher at 72,000-76,000yuan/mt. Price of low-end 280D and above for braid slowly increased,
lower talked at 68,000-72,000yuan/mt, with medium-to-high quality ones at 72,000-78,000yuan/mt.
Exports of spandex extended lower in Jul. Overseas customers mainly purchased spandex on a need-to-basis. Tight
containers and high sea freight also prevented exports. Export price of 20D, 30D and 40D rose obviously. In Jul, 20D
was talked at $11.5-15.0/kg, FOB. 30D prices were at $10.5 -12.6/kg, FOB. 40D prices were at $9.0-11/kg, FOB. Export
price of medium-to-coarse denier spandex rose to $8.5-10.5/kg.
Spandex plant operating rate and inventory

inventory O/R
100
Day
% 70
60
90
50
40
80
30
70 20
10
60 0
Operating rate of spandex plants was at 95-97% in Jul, averaged at 96.6%. Huahai slightly reduced run rate in the first
half of Jul but resumed normal operation later. By the end of Jul, inventory of spandex decreased by 1.6 days to around
4 days, hitting historic new low. Supply of conventional 10-70D was tight and the delivery needed to queue. However,
supply tightness slightly eased with hiking spandex price and the shutdown of some fabric mills. By the end of Jul,
stocks focused on spandex for diaper and degraded goods. Supply of spandex was tight and spandex remained sellers’
market.

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Price of melt-spun spandex apparently climbed up in Jul, rarely far lower than that of dry-spun spandex. Supply of
melt-spun spandex was tight and the run rate climbed up with moderate sales. Melt-spun market was during
prosperous stage of the business cycle. With moderate profit, there were many new machine in the second half of
2021. Some old units were also active in adding supply. Stocks of melt-spun spandex were low. Suppliers were eager
to revise up price. Application field of melt-spun spandex expanded from air covered yarn and conventional covered
yarn machine to some integrated air covered yarn machine. By the end of this month, melt-spun spandex 20D was
mainly discussed at 83,000-85,000yuan/mt, up by around 10,000yuan/mt, and 15D was pegged at 90,000yuan/mt in
some plants.
2.2 Downstream market
FIGURE 8
Downstream plants operating rates
Markets Area 2021-6-30 2021-7-30 Changes
Covered Yarn Zhuji and Yiwu 67% 73% 6%
Zhangjiagang 72% 72% 0%
Xiaoshan and Shaoxing 74% 74% 0%
Circular knitting Foshan and Chaoshan 40% 34% -6%
Xiaoshan and Shaoxing 65% 64% -1%
Changshu 63% 62% -1%
Warp Knitting Guangdong 72% 72% 0%
Haining 89% 87% -2%
Lace Fujian 34% 32% -2%
Average 64.0% 63.3% -0.7%
Source: CCFGroup.com
Operating rate of some downstream fabric mills declined by 0.7% in Jul compared with end-Jun. The performance
was not weak during the traditional off-season. By the end of this month, operating rate of covered yarn plants was
mainly above 70%. Stocks of covered yarn were low. Sales of woven 2-way stretch yarn remained good. Operating
rate of circular knitting plants decreased, at 30-60% in end-Jul. Operating rate of high-density circular knitting
machine dropped by around 10% in Guangdong and that of circular knitting plants also inched down in Xiaoshan,
Shaoxing of Zhejiang and Jiangsu. Plants mainly produced dralon fabrics and fabrics for sportswear and 2-way stretch
fabrics. Operating rate of warp knitting plants was at 70-90%, remaining high in Guangdong and moving down in
Haining. Lace knitting plants, braid mills and diaper plants showed weak acceptance with soaring spandex price in
recent one year, with run rate at 30-50%. Operating rate of downstream fabric mills remained high. Circular knitting
plants, warp knitting mills and covered yarn plants showed high rigid demand.
Operating rate of covered yarn plants slightly increased in Jul, near 70-80% in end-Jul. Proportion of air covered yarn
in covered yarn market approached 70%. Production efficiency of integrated air covered yarn was high and the
production cost was low, replacing some application of conventional covered yarn. Conventional covered yarn is

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mostly used for socks and underwear, and some is used for high-end fabric for apparels. Air covered yarn is widely
applied into fabrics like elastic fabrics and the consumption in circular knitting machine is frequent too. Price of
nylon/spandex covered yarn and polyester/spandex covered yarn shivered in Jul. Nylon/spandex conventional
covered yarn 4070 prices were in the range of 32,000-38,000yuan/mt, and polyester/spandex 4075 for air covered
yarn was mainly pegged at 18,200-20,200yuan/mt, up by 2,000yuan/mt on the month. Nylon/spandex 4070 air
covered yarn was higher stayed at 28,700-28,900yuan/mt, up by 1,200yuan/mt compared with the end of last month.
Operating rate of core-spun yarn plants stayed above 70% in Zhangjiagang. Production of 2-core-spun yarn and 3-
core-spun yarn and PBT covered yarn was moderate.
Operating rate of integrated air covered yarn plants was near 80% in Shengze. Production of spandex 15D
+polyester/spandex 75D/100D covered yarn for 2-way stretch fabrics remained hot.
Operating rate of air covered yarn plants was above 70% in Xiaoshan and Shaoxing in Jul. Stocks of covered yarn
remained low. Demand for spandex 40D kept improving.
Operating rate of conventional covered yarn plants advanced to 67% in end-Jun in Zhuji and Yiwu from 65% in end-
May. Most large companies ran at above 80% of capacity. Production and sales of seamless underwear and covered
yarn for fabrics in Shengze remained sound. Price of spandex 10D for socks rose further, mainly discussed at 145,000-
155,000yuan/mt.
Operating rate of small circular knitting plants ascended to 40% in Jun. Spandex 40D black yarn was discussed at
74,000-76,000yuan/mt.
Operating rate of circular knitting plants inched up in Jun, mainly above 60-70%. Operating rate of circular knitting
plants in Foshan, Guangdong and Chaoshan, Guangdong ascended when the limit of electricity consumption ended
and orders turned to thick fabrics. Operating rate of circular knitting plants slightly rose in Zhejiang and Jiangsu
stimulated by demand from dralon fabrics, 2-way stretch fabrics and fabrics for sportswear.
Operating rate of circular knitting plants dropped to above 60% in end-Jul from 60-70% in end-Jun. Production
focused on milk yarns on single jersey market. On interlocked market, production concentrated on dralon fabric,
Roman fabric and fabrics for yoga. Some plants slightly slashed run rate after failing to track the uptrend on feedstock
market.
Operating rate of circular knitting plants was above 60% in Jiangsu. Production of fabrics for sportswear was ample
and good. Production of interlocked thermal fabrics and 2-way stretch fabrics sustained and that of some machine
slightly declined.

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Operating rate of circular knitting plants slipped to above 30% in end-Jul from 40% in end-Jun in Foshan, Guangdong
and declined to above 60% in end-Jul from near 70% in end-Jun in Shantou, Guangdong. Production of high-density
knitting machine was high and producers faced difficulty in tracking the uptrend on feedstock market. Coupled with
the impact of the off-season, operating rate declined. Operating rate of cotton/spandex circular knitting plants inched
down in Foshan, Guangdong.
Spandex and related products price trend

Cotton 3128 Nylon (DTY 30D/12F) spandex 40D Polyester (DTY 150D/48F)
85000
75000 yuan/mt
65000
55000
45000
35000
25000
15000
5000
New circular knitting high-density machine increased a lot in Quanzhou, Fujian, and plants mainly produced light
fabrics for sportswear, with run rate stabilized at 50% in end-Jul.
Operating rate of warp knitting plants increased to above 70% in Jul in Guangdong, higher at above 80% in some large
companies. Production of fabrics for sportswear and swimwear sustained.
Operating rate of warp knitting plants containing spandex declined to around 90% from above 90% in Jul in Haining,
Zhejiang. Run rate of super-soft fabric plants and velvet fabric mills was around 90%. Orders for velvet fabrics were
inadequate and those of high-end warp knitting fabrics were stable.
Operating rate of lace knitting plants dropped to above 30% in Changle, Fujian. Losses of nylon/spandex lace knitting
fabric were serious.
Operating rate of braid mills was at 40-50% in Jul, higher at 50-60% in large companies. Braid mills failed to track the
uptrend on feedstock market with inadequate orders. Orders for spandex 140D for ear band apparently declined and
demand for spandex 70D and 40D for earband of mask also dropped. The application of coarse denier spandex in the
field of mask ear band also declined. Producers showed lower production acitivity after application of coarse denier
spandex in ear band of mask also decreased.

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Demand for diaper reduced during summer and due to the falling new babies. Overall market was during traditional
off-season. Sales of spandex were mainly stimulated by rigid demand. Run rate of diaper plants declined. Ordinary
spandex 420-560D for diaper was mainly pegged at 58,000-62,000yuan/mt, higher at 63,000-66,000yuan/mt, with
high quality ones at 67,000-70,000yuan/mt.
2.3 Imports and exports

According to customs statistics, spandex imports reached 3,246mt in Jun 2021, up by 32% m-o-m and 73.3% y-o-y
respectively. Monthly import average price was at $9.683/kg, up by $0.632/kg m-o-m. Imports of spandex from
Vietnam, India and Singapore increased by 566 tons, 405 tons and 16 tons respectively in Jun and those from South
Korea and Japan inched down.
Spandex imports of China in 2020-2021

mt Import volume MOM change
4200 120%
3700
80%
3200
2700 40%
2200 0%
1700
-40%
1200
700 -80%
Aug-20
Jul-20
Feb-20
Sep-20
Feb-21
Dec-20
Jan-20
Jun-20
Apr-20
Jan-21
Jun-21
Nov-20
Apr-21
Mar-20
May-20
Oct-20
Mar-21
May-21
FIGURE 9
Spandex import in Jun, 2021
Jun-21
Import Volume (tons) 3,246
Changes ($/KG) 0.632
FIGURE 10
Spandex import by origin
Vietnam 1,560,356 14,401,188 566,405
South Korea 500,124 5,364,692 -39,664

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India 404,947 3,852,644 404,947

Singapore 399,698 3,837,254 15,909
Japan 175,014 2,719,271 -8,067
Other 205,650 1,253,486 -152,167
Total 3,245,789 31,428,535 787,363
Spandex exports of China in 2020-2021

mt Export volume
10700 120%
9700
8700 80%
7700
6700 40%
5700
4700 0%
3700
2700 -40%
1700
700 -80%
Jan-20
Feb-20
Jun-20
Sep-20
Aug-20
Dec-20
Jan-21
Feb-21
Jun-21
Jul-20
Mar-20
Oct-20
Apr-20
Nov-20
Mar-21
Apr-21
May-20
May-21
Source : Custom
According to customs statistics, spandex exports in Jun 2021 totaled 5697mt, down by 26.5% month on month and
up 76.1% year on year. Export price averaged at $9.29/kg, down by $0.404/kg on the month. Exports of spandex to
Turkey, Columbia and Bangladesh slipped apparently, down by 1666 tons, 290 tons and 147 tons respectively.
FIGURE 11
Spandex export in Jun, 2021
Jun-21
Export Volume (tons) 5,697
FIGURE 12
Spandex exports by destinations
Destination Volume (kg) Value (USD) MOM change (kg)
Turkey 1,033,533 10,827,356 -1,666,346
Brazil 477,226 4,311,397 370,619
Taiwan China 417,305 3,963,245 -131,056
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Vietnam 354,410 3,040,492 84,592

Bangladesh 331,423 3,251,821 -147,030
Egypt 330,742 3,250,415 3,987
South Korea 265,854 2,198,847 -122,841
Mexico 241,996 2,309,155 17,469
Pakistan 201,601 1,688,308 -81,917
Columbia 166,644 1,490,881 -289,814
Others 1,876,164 16,589,587 -96,869
Total 5,696,898 52,921,504 -2,059,206
2.4 Industry news

1) Zhuji Huahai’s spandex unit witnessed volatile run rate in the first half of Jul. Around 14kt/year of capacity was
once suspended or cut, and its total capacity was at 72kt/year. Another 30kt/year new spandex unit will gradually
start operation in Q3.
2) Chongqing Huafon’s new spandex unit with 50kt/year of capacity is expected to commission operation in end-Aug.
The engineering connection of old units and new units and the influence on the operating rate of spandex plants
should be noted.
3) Blue Ridge Tunhe started turnaround from Jun 25: 2 BDO units totally with 200kt/year of capacity and one PTMEG
plant with 46kt/year of capacity shut down for maintenance, which will last for near 20 days.
4) Wanhua Yantai's MDI unit with 1100kt/year of capacity would start scheduled turnaround from Jul 10, 2021, which
would last for around 25 days.
2.5 Market outlook

Prices of major feedstock for spandex are expected to hike in Aug, which will end up with apparently higher cost.
Supply of conventional spandex remains very limited. Rigid demand for spandex is anticipated to enjoy support in
short run. More downstream plants will face pressure in tracking the uptrend on spandex market amid high spandex
price. Stimulated by cost, price of spandex is still anticipated to move up and remain high. Downstream buyers are
supposed to be cautious in purchasing as it is more difficult to follow the uptrend on spandex market and there will
be new spandex unit, which will result into rising supply of spandex. Downstream buyers will show lower intention to
hoard up high-priced spandex. Therefore, price of spandex is anticipated to rise in Aug but the increment may be
smaller than that of feedstock. There are some points noteworthy: the trial production of Huafon Chemical's
50kt/year new unit in end-Aug and the stability of this unit; the stability of Huahai's new 30kt/year unit; whether
downstream market will track the uptrend of feedstock market.

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DISCLAIMER
All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui
Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice.
CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise
directly or indirectly from use of or reliance on such information. This report or any portion hereof may not be reprinted,
sold or redistributed without the written consent of CCFGroup.

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M O N T H LY R E P O R T

Tel: 86-571-83786504 Email: service@ccfgroup.com

July Spandex Feedstock & Fiber Market Report

Spandex feedstock prices

Notice: MMDI price adjustment

PTMEG imports of China in 2020-2021

Tel: +86-571-83786504 www.ccfgroup.com

Taiwan China 1,887,230 10,044,373 -555,780

Source: China customs

MMDI Imports of China in 2020-2021

Source : China Customs

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Source: China customs

1.3 Market Outlook

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280D and above 64 64-66 67-70 68 68-72 72-78

Spandex price trends in 2019-2021

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Spandex plant operating rate and inventory

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2.2 Downstream market

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Tel: +86-571-83786504 www.ccfgroup.com

Spandex and related products price trend

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2.3 Imports and exports

Spandex imports of China in 2020-2021

Source : China Customs

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India 404,947 3,852,644 404,947

Spandex exports of China in 2020-2021

Vietnam 354,410 3,040,492 84,592

2.4 Industry news

2.5 Market outlook

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