SunSirs: The Downstream Was in a Downturn, and the Viscose Staple Fiber Market Was Deadlocked

Price trend

According to the price monitoring of SunSirs, the price of viscose staple fiber was stable last week (August 8-15). As of August 15, 2022, the domestic ex-factory quotation of 1.2D*38mm viscose staple fiber was 15,400 RMB/ton, which was the same as the price at the beginning of the month. The price of rayon yarn fell, the average ex-factory price (30S, ring spinning, first-class products) was 18,666 RMB/ton, and the price fell by 100 RMB/ton.

Analysis review

Last week (August 8-15), the downstream demand continued to be sluggish, the viscose staple market was stalemate, and the price was stable. The operating rate of downstream rayon mills was relatively low, and the enthusiasm for replenishing raw materials was not high. Some viscose staple fiber mills adopted a slow-down production method to alleviate the contradiction between the current market downturn and the rising inventory, and at the same time delayed the consumption of their own pulp inventory. The price of downstream rayon yarn fell, the popularity was low, and the inventory was high.

Analyzing the reasons, the cost support was not reduced, the market price of raw material dissolving pulp was high, and the production cost of viscose staple fiber was maintained at a high level as a whole, but the downstream demand for rayon yarn was light, showing a trend of price but no market, factory inventory increased, and manufacturers were cautious and had a strong willingness to stabilize prices. The operating rate of rayon yarn factories was relatively low, around 4-50%.

Market outlook

The cost pressure does not decrease, and it is difficult for viscose staple fiber factories to make concessions, but the demand for textile terminals continues to be flat, the transaction is always average, the downstream orders are always average, and the entire viscose staple fiber industry chain has entered a stalemate. Viscose staple fiber has shown a trend of price and no market, and factory inventory has increased. Most cotton yarn factories are waiting for viscose staple fiber factories to issue appropriate price policies. SunSirs’ analysts predict that viscose staple fiber prices will face downward pressure.

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