The viscose staple fiber market in China experienced a period of consolidation during the week of September 15-21, 2025, characterized by stable pricing and steady transaction activity. Downstream mills primarily focused on executing pre-existing orders, contributing to a balanced market dynamic. This analysis, drawing on SunSirs' commodity market data from September 22, 2025, reorganizes key factors including raw material trends, supply-demand dynamics, inventory levels, and provides a clear outlook for the VSF market.

Market Overview and Price Stability

The viscose staple fiber market maintained a weak but stable price trend last week. According to SunSirs' commodity analysis system, the average market price of viscose staple fiber was 13,120 CNY/ton by September 21, unchanged from the previous week. This stability reflects a market driven by the fulfillment of prior commitments rather than new demand, indicating a consolidation phase.

Price Summary:

The lack of price volatility highlights a market in equilibrium, supported by consistent supply and cautious downstream purchasing.

Raw Material and Cost Analysis

Raw material costs, particularly for dissolving pulp, the key input for viscose staple fiber, showed minimal movement, offering limited price support:

Dissolving Pulp: Prices remained stagnant, with domestic dissolving pulp averaging approximately 6,700 CNY/ton. Internationally, broadleaf pulp was priced at around 800 USD/ton, and softwood pulp at 870 USD/ton, reflecting a weak global trend.

Auxiliary Materials: Prices of liquid alkali and sulfuric acid were largely stable with minor fluctuations, resulting in a neutral cost environment.

The subdued cost dynamics failed to provide significant upward pressure on viscose staple fiber prices, maintaining a stable cost foundation.

Supply and Inventory Insights

The supply side of the viscose staple fiber market remained steady, with industry operating rates holding at approximately 75%. Key points include:

Consistent Production: Output levels showed little variation, ensuring a stable supply.

Low Inventory Levels: Manufacturers reported reduced inventory, with some factories holding minimal stocks. This decline in overall viscose staple fiber inventory offered modest supply-side support, though its impact was limited.

The balanced supply, combined with lower stock pressures, helped sustain market stability without triggering significant price shifts.

Downstream Demand and Market Activity

Downstream demand from viscose yarn mills remained subdued, consistent with the traditional off-season:

Operating Rates: Yarn mill operating rates saw a slight uptick, but overall demand was weak.

Pricing: In Jiangsu, ring-spun R30S yarn was priced around 17,100 CNY/ton, and R40S around 18,300 CNY/ton, with minimal changes.

Transaction Trends: Sales activity was lackluster, with mills relying on existing raw material stocks. Only a few export orders for vortex-spun viscose yarn showed minor improvement, while procurement was driven by necessity rather than growth.

This conservative approach by downstream buyers constrained demand-side momentum, limiting price movements.

Outlook and Forecast

The short-term outlook for the viscose staple fiber market is shaped by the following factors:

Raw Material Trends: Dissolving pulp and sulfuric acid markets are expected to remain largely stable, while liquid alkali prices may experience a slight decline. This suggests a potential downward bias in raw material costs, reducing cost support for viscose staple fiber.

Supply Dynamics: Operating rates are likely to remain stable, with low inventory levels among some producers providing mild supply-side support. However, overall supply remains adequate to meet current demand.

Demand Outlook: Terminal demand is anticipated to see modest improvement, with procurement continuing on an as-needed basis. Significant demand growth is unlikely in the near term.

Sunsirs analysts forecast that the domestic viscose staple fiber market will maintain stability with minor adjustments, with prices expected to range between 13,000-13,200 CNY/ton on a cash basis. Manufacturers are likely to hold steady on current quotations, reflecting the interplay of balanced supply, limited cost pressure, and cautious demand.

Conclusion

The viscose staple fiber market consolidated during September 15-21, 2025, with prices holding at 13,120 CNY/ton, driven by stable supply, low inventories, and downstream mills focusing on pre-existing orders. Despite limited cost support from raw materials and tepid demand, the market avoided significant volatility. The short-term outlook suggests continued consolidation, with prices likely to hover within a narrow range. Stakeholders should closely monitor raw material trends and downstream restocking patterns.

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