Price trend

According to the commodity market analysis system of SunSirs, as of July 31, the average market price of viscose staple fiber was 12,980 RMB/ton, down 40 RMB/ton from the previous month, a monthly decline of 0.31%.

Analysis review

In July 2025, the viscose staple fiber market faced pressure and saw a slight decline. The market for dissolving pulp, the main raw material, remained stable, with limited support from the cost side. Downstream yarn mills primarily consumed their raw material inventories and were not very active in replenishing. The trading atmosphere on the market was average, with players primarily executing pre-orders. The viscose staple fiber market was weak and consolidating, with manufacturers actively stabilizing prices, leading to a slight decline.

Cost: By July 2025, the market price of raw material dissolving pulp remained relatively stable, with domestic dissolving pulp temporarily priced at around 6,700 RMB/ton, while overseas hardwood pulp prices were around $800/ton and softwood pulp prices were around $870/ton. The market prices of auxiliary materials such as liquid caustic soda and sulfuric acid remained largely stable with minor fluctuations, providing general support on the cost side..

Limited Supply Support

Industry supply was declining, with the daily market operating rate remaining at around 75%. Inventory levels at various viscose staple fiber manufacturers declined compared to previous periods, with downstream yarn manufacturers taking delivery on demand. Overall inventory levels in the viscose staple fiber market had decreased, but market supply remained ample, and positive supply-side support was limited.

No significant improvement in the downstream market

The downstream rayon yarn market saw a slight increase in plant operating rates, with minimal price fluctuations. As of July 31, the price of ring-spun R30S yarn in Jiangsu Province was around 17,100 RMB/ton, and that of ring-spun R40S yarn was around 18,300 RMB/ton. The market was traditionally in the off-season, and downstream rayon yarn transactions were suboptimal. Only certain vortex-spun rayon yarn types were seeing some improvement in export orders. Spinning mills were primarily consuming raw material inventories and were in urgent need of replenishment, with no significant improvement in demand.

Future outlook:

On the raw material side, the market for dissolving pulp (the main ingredient) and sulfuric acid (the auxiliary ingredient) is likely to remain generally stable, while the market for liquid caustic soda may see a narrow decline. Therefore, SunSirs believes a downward trend in viscose staple fiber prices in the short term, with insufficient cost support.

Supply and demand side: The operating rate of viscose staple fiber market equipment may not fluctuate much, and the inventory level of some manufacturers is relatively high. Therefore, it is expected that the supply side of the viscose staple fiber market will not be well supported in the short term; the terminal market is still in the traditional off-season, and new orders are limited. Downstream yarn mills have a certain risk aversion sentiment and may maintain the signing of just-in-time orders. It is expected that the driving force from the demand side of the viscose staple fiber market will be average in the short term.

Overall, the market for dissolving pulp, the main raw material, may remain weak and stagnant, with sufficient overall supply. Downstream yarn mills are mainly signing orders on demand. Amidst mixed market news, viscose staple fiber manufacturers may maintain their previous quotations. As August gradually transitions to the traditional peak season of "Golden September and Silver October", viscose staple fiber may rebound, but the increase is expected to be limited. Therefore, analysts at Sino-Foreign Trade predict that the domestic viscose staple fiber market will remain stable with small fluctuations in the short term, with prices expected to be between 12,800 and 13,000 RMB/ton.

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