Last week (May 18–22), the domestic viscose staple fiber market maintained its firm trajectory, with prices edging upward. The supply-demand dynamic dictated the pace of market activity; cost-side support remained limited, while downstream buyers clearly demonstrated a pattern of purchasing strictly on an as-needed basis.

Price Trends: The price center rose steadily, and the magnitude of the gains continued to widen.

Last week, prices for viscose staple fiber continued the upward trend observed in the preceding period, with the price center steadily shifting higher. According to monitoring data from SunSirs, as of May 22, the domestic ex-factory price for 1.2D/38mm viscose staple fiber stood at 14,060 RMB/ton—an increase of 80 RMB/ton from the 13,980 RMB/ton recorded on the previous Friday (May 15), representing a weekly gain of 0.57%. Furthermore, this marks a cumulative increase of 2.63% compared to the price of 13,700 RMB/ton on May 1, pushing prices to a recent-period high.

Last week, price trends were characterized by "stability with an upward bias"; both market quotes and actual transaction prices moved upward in tandem. Major manufacturers demonstrated a strong inclination to hold firm on pricing; specifically, suppliers such as Yibin Siliya raised their quoted rates. Delivered prices (settled via acceptance) largely clustered within the 14,000–14,100 RMB/ton range, with limited room for negotiation on actual orders, creating a "seller's market" environment. In terms of the pace of price appreciation, the market had already completed two key rounds of increases in the preceding period (rising to 13,880 RMB/ton on May 7 and to 13,980 RMB/ton on May 11); last week, bolstered by low inventory levels, prices broke upward once again, signaling a further intensification of bullish sentiment within the market.

Upstream Raw Materials: Dissolving pulp fluctuations were limited, and cost support was relatively weak

Last week, the market for dissolving pulp—the primary raw material for viscose staple fiber—remained largely stable overall, offering only limited cost support to viscose staple fiber.

Domestic dissolving pulp prices held steady, with mainstream quotes centering within the 6,500–6,600 RMB/ton range; the supply-demand landscape remained relatively balanced, and the market currently lacks any distinct drivers for significant price fluctuations.

Prices for imported dissolving pulp have experienced slight fluctuations; influenced by maintenance-related disruptions in overseas supply, foreign market quotes have remained relatively firm. However, domestic inventory levels remain within a reasonable range, preventing any drastic shifts in pricing.

Costs for auxiliary materials and utilities have remained generally stable, and production costs for viscose staple fiber manufacturers have not seen any significant upward trend. The current round of price increases is driven primarily by supply-and-demand dynamics, rather than being fundamentally driven by cost-side factors.

Overall, the dissolving pulp market remains characterized by stability; prices lack the momentum for significant fluctuation, offering only limited support to the price of viscose staple fiber. On the cost side, inputs serve primarily as a "floor" to prevent prices from falling further, rather than acting as the primary driver for upward movement.

Downstream Demand: Purchasing activity was dominated by essential requirements, with orders placed strictly on an as-needed basis, maintaining a steady and measured pace.

Last week, demand from downstream yarn mills for viscose staple fiber (VSF) exhibited a pattern characterized by "weak immediate conditions yet steady essential demand." Market activity was dominated by need-based purchasing, and the pace of goods movement within the market remained stable.

Essential purchasing persisted: Prices in the downstream rayon yarn market rose in tandem with VSF trends. The prevailing negotiated price for R30S ring-spun yarn held steady within the range of 16,800–17,000 RMB/ton. To ensure production continuity, yarn mills continued to release essential orders for VSF, and lower-priced inventory was absorbed relatively quickly.

Cautious Procurement Pace: Influenced by the seasonal lull in the downstream textile sector, operating rates for weaving looms remain at low-to-moderate levels; specifically, loom utilization in the Jiangsu and Zhejiang regions stands at approximately 57%. With new orders remaining limited, yarn mills are primarily focused on fulfilling existing backlogs. Consequently, procurement strategies are dominated by a "buy-as-needed" approach, reflecting a lack of appetite for large-scale inventory replenishment.

Stable Sales Performance: Viscose staple fiber manufacturers currently face no pressure regarding product off-take, and industry-wide inventory levels remain low. Supplies of certain product specifications are tight, while the overall pace of shipments remains steady; there are no signs of sluggish sales or large-scale inventory accumulation.

Overall, while downstream demand has not shown significant improvement, essential purchasing is providing a certain degree of support to prices; the market is currently characterized by a "tight balance between supply and demand," underpinning a steady upward trend in pricing.

Market Outlook

In the short term, the viscose staple fiber market retains some momentum to sustain prices; this core support stems from low inventory levels and demand-driven purchasing. However, room for further upside is constrained by insufficient cost-side support and relatively weak downstream terminal demand. Consequently, the market is expected to maintain a pattern of strong, volatile fluctuations in the near term, with the price center likely hovering and oscillating slightly around current levels.

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