Last week (May 8-14, 2023), a new price for viscose staple fibers began to be implemented locally, with overall calm performance and a slight upward shift in the price center. The transaction atmosphere is relatively average, with downstream cotton yarn factories mainly waiting and seeing, and new orders are rare. The price center of raw material dissolution slurry has decreased, and the load of viscose staple fibers has increased, but the factory inventory is not high. The industry’s startup rate has slightly rebounded, with the overall industry load currently around 72.6%, mainly due to the restart of Xinjiang Zhongtai equipment after maintenance.

Viscose staple fiber price trend chart

According to the Commodity Market Analysis System of Business Society, the center of gravity of viscose staple fiber prices has slightly shifted upwards. As of May 14th, the domestic factory quotation for 1.2D * 38mm viscose staple fiber was 13360 yuan/ton, an increase of 80 yuan/ton compared to the previous week, with a weekly increase of 0.60%.

In terms of cost: The production cost of viscose staple fibers has not changed much, and the cost support is limited. The price center of raw material dissolved slurry has slightly declined, and the domestic market is mainly stable. Downstream procurement is based on demand, and businesses mainly execute early orders and ship smoothly.

Downstream cotton yarn market

Human cotton yarn is relatively stable, with average transactions and prices basically maintained. However, some enterprises have experienced price reductions and promotions under inventory pressure. According to the analysis system of the commodity market of the Business Society, as of May 14th, the average ex factory price of human cotton yarn (30S, ring spinning, first-class product) was 17566 yuan/ton, and the price remained unchanged. The production of human cotton yarn has rebounded, and it has been around 71% since the end of this week.

Future Market Forecast

At present, the performance of the viscose staple fiber market is calm, and enterprises are still mainly focused on executing orders, with firm quotations from enterprises. It is difficult for terminal demand to show significant improvement in the short term, with downstream procurement being the main focus. The new round of prices and orders basically ended last week, and the market has once again entered a wait-and-see period for adjustment. Analysts from Business Society predict that the short-term market for viscose staple fibers and rayon yarn will remain stable.