Last week (May 15-21, 2023), the price of viscose staple fiber remained stable, and the overall performance was calm, and the market entered a wait-and-see period. Most of the factory’s early orders are mainly shipped, and there are sporadic negotiations for new orders that are just needed. The factory’s inventory is low, and some shipments are tight. The startup rate of the viscose staple fiber industry has slightly rebounded, with an overall industry load of about 74.8%, mainly due to the restart of Xinjiang Zhongtai equipment after maintenance. Downstream people’s cotton yarn is still lukewarm and not hot, and orders for just needs are mainly sold, with stable prices. The production of human cotton yarn has slightly declined, and by the end of this week, it is basically around 70%.

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 21, the factory quotation for 1.2D * 38mm viscose staple fiber in China is 13360 yuan/ton, which is the same as last week’s price.

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 pulp remains stable, with the domestic market mainly maintaining stability. Downstream procurement is based on demand, and businesses often execute early orders, with stable shipments being the main focus.

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 21, the average ex factory price of human cotton yarn (30S, ring spinning, first-class product) was 17566 yuan/ton, and the price remained flat. The production of human cotton yarn has slightly decreased, and it is basically around 70% by 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 market has once again entered a wait-and-see period of adjustment, focusing on downstream demand. Analysts from Business Society predict that the short-term market for viscose staple fibers and rayon yarn will remain stable.