In May 2025, domestic viscose staple fibers continued to operate weakly, the upstream raw material market price fell sharply, the cost side support was insufficient, and downstream yarn companies mostly maintained rigid demand for goods. The demand side performed poorly, and the viscose staple fiber market price fell weakly.

According to the commodity market analysis system of SunSirs, as of May 30, the average market price of viscose staple fibers was 13,360 RMB/ton, a decrease of 120 RMB/ton from the previous month, a monthly decline of 0.89%.

In early May, the main raw material dissolving pulp market fell sharply, the auxiliary material liquid alkali and sulfuric acid markets fell step by step, and the cost side support weakened; in addition, the terminal demand was weak, and some downstream cotton yarn manufacturers reduced production or stopped for holidays, and the demand for viscose staple fibers decreased. Under the double negative factors, the new round of transaction prices of various viscose staple fiber manufacturers were reduced, but the downstream manufacturers had limited new orders and mostly maintained rigid demand purchases. Since mid-month, the market price of auxiliary materials has continued to rise. With the easing of the Sino-US tariff issue, only a few downstream factories have shown an improvement in their enthusiasm for picking up goods, but there has been no substantial boost to the market. The industry is mainly executing a new round of orders, and the market price of viscose staple fibers has remained stable.

Cost: The market price of the main raw material dissolving pulp has declined significantly, and the market price of auxiliary materials liquid alkali and sulfuric acid has risen slightly. The cost trend is not good, and the average production cost of viscose staple fibers has been greatly reduced.

Supply and demand: The operating rate of the viscose staple fiber industry in May was around 80.28%, and the market supply increased compared with the previous month. During the month, the operating load of some viscose staple fiber units in Shandong Province increased, and some viscose staple fiber units in Xinjiang were shut down for maintenance in the second half of the month, and the overall market supply increased slightly.

The operating rate of downstream rayon yarn market units did not fluctuate much, and the previously shut down units have not yet been restarted. Entering May, the downstream rayon yarn market is waiting for the new round of viscose staple fiber prices to be released and the rigid demand orders to be signed. Although the mid-month China-US tariff policy brought some good news to the market, the terminal market demand has recovered slowly, and downstream yarn companies still consume mainly raw material inventory, with weak purchasing intentions. The new round of order signing is not ideal, and the demand side drags down the market trend. The overall market inventory is still on the rise.

Market outlook

Raw material side: Although there is an expectation of an increase in the supply of viscose staple fibers, the demand for dissolving pulp is unlikely to improve significantly under the influence of weak demand in the terminal market. Therefore, the dissolving pulp market is expected to operate weakly and steadily next month.

Supply and demand side: Some viscose staple fiber manufacturers in Shandong plan to resume full-load operation next month, and the industry supply may increase. Therefore, it is expected that the supply side of the viscose staple fiber market will still be loose next month; June is a traditional off-season for demand, and it is difficult for the terminal market demand to improve. Downstream factories may maintain rigid demand orders, so it is expected that the demand side of the viscose staple fiber market will not be well supported next month.

On the whole, the upstream main raw material dissolving pulp market may remain weak and stalemate, the industry supply is expected to increase, downstream spinning mills may purchase on demand, and industry players lack confidence in the future market. Analysts from SunSirs predict that domestic viscose staple fibers will continue to be weak next month, and the market price will fall slightly. The price is expected to be 13,000-13,200 RMB/ton acceptance.

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