In May 2026, the domestic market for viscose staple fiber (VSF) was characterized by low inventory levels providing support, steadily rising prices, and a relatively stable equilibrium in supply-demand dynamics. With industry inventories remaining at low levels and manufacturers demonstrating a strong resolve to uphold pricing, domestic production prices for the mainstream 1.2D (38mm) VSF grade experienced a stepped upward trend throughout the month, reflecting an overall bullish trajectory for the market.

Price Trend: Stepwise Ascent, Significant Gains Within the Month

This month, prices for viscose staple fiber (VSF) exhibited a distinct step-wise upward trend, with the overall price level continuously shifting higher.

Early Month (May 1–4): Market prices held steady at 13,700 RMB/ton, serving as the monthly baseline price, with a fluctuation of 0.00%.

First Wave of Increases (May 7): Prices were raised to 13,880 RMB/ton—an increase of 180 RMB/ton (1.31%) compared to the start of the month. Prices subsequently remained stable through May 10.

Second Wave of Increases (May 13): Prices were further adjusted upward to 13,980 RMB/ton—an increase of 280 RMB/ton (2.04%) compared to the start of the month. Prices remained flat on May 16.

Third Wave of Increases (Starting May 19): Prices ultimately rose to 14,060 RMB/ton—an increase of 360 RMB/ton compared to the start of the month, representing a cumulative gain of 2.63%. This price level was maintained throughout the period from May 19 to May 29.

As of May 29, the average market price for 1.2D (38mm) viscose staple fiber stood at 14,060 RMB/ton, reflecting a cumulative increase of 2.63% since the beginning of the month. The price trajectory demonstrated a distinct "rise—stabilize—rise again—stabilize" step-wise pattern, characterized by a clear rhythm of firms actively supporting price levels and a continuously rising price floor.

Upstream Market: Cost support remained weak, and raw material price fluctuations were limited

In May, the upstream raw material market for viscose staple fiber remained largely stable, offering limited support to the cost side; however, the relative stability of raw material prices provided a foundational environment for manufacturers to maintain their pricing levels.

Dissolving Pulp Market: As the core raw material for viscose staple fiber, mainstream domestic quotes for dissolving pulp hovered within the 6,500–6,600 RMB/ton range. The supply-demand landscape remained relatively balanced, with the market currently lacking any distinct drivers for significant price appreciation or depreciation. Prices for imported dissolving pulp experienced only minor fluctuations; despite maintenance-related disruptions on the overseas supply side, international market prices did not undergo drastic swings, resulting in an overall absence of significant upward or downward pressure on the cost front.

Cotton Linters and Other Auxiliaries: Market prices remained generally steady without significant volatility. The industry's overall cost base remained relatively stable, and manufacturers did not face any marked increase in cost-related pressures. Given current low inventory levels, the impetus for manufacturers to hold firm on pricing stems more from supply-side dynamics than from cost-side factors.

Downstream Demand: Essential demand remains stable, with procurement shifting primarily to an "as-needed" basis during the off-season.

This month, the downstream market for viscose staple fiber has exhibited a pattern characterized by "weak immediate conditions yet stable essential demand." Amidst the traditional off-season, the demand side has not witnessed any explosive growth; however, steady purchasing driven by essential requirements has persisted, providing a certain level of support to prices.

Market Performance of Rayon Yarn: Downstream rayon yarn prices have risen in tandem. The prevailing negotiated price for R30S ring-spun yarn has remained within the range of 16,800–17,000 RMB/ton. To ensure production continuity, yarn mills have maintained a steady stream of essential purchases for viscose staple fiber, resulting in the rapid absorption of lower-priced supplies.

Procurement Trends: Downstream enterprises are primarily adopting an "on-demand" procurement strategy. Overall product turnover remains steady, with no signs of large-scale, concentrated inventory restocking. While some companies previously held relatively ample raw material inventories—leading to a cautious approach to procurement—the steady rise in viscose staple fiber prices has shifted the market's transaction center upward; as existing low-priced stock is depleted, purchases driven by essential demand are now providing support for higher price levels.

Terminal Demand Outlook: The textile and apparel market is currently in its traditional off-season, and there has been no significant surge in terminal orders. However, market expectations regarding inventory restocking for the upcoming Autumn/Winter apparel season have begun to heat up. Consequently, some yarn mills are proactively building up their raw material inventories, thereby providing a degree of anticipatory support for viscose staple fiber prices.

Market outlook

n the short term, the market for viscose staple fiber currently lacks clear driving factors for either price increases or declines: on the cost side, no significant fluctuations are anticipated in the dissolving pulp market; meanwhile, downstream demand remains driven primarily by essential consumption, resulting in an overall stable supply-demand landscape. Supported by low inventory levels, manufacturers remain inclined to hold firm on pricing; consequently, viscose staple fiber prices are expected to maintain their current high levels in the short term—or continue a trend of narrow, slightly upward fluctuations—making a substantial price pullback unlikely. Moving forward, key factors to monitor include fluctuations in raw material prices, changes in operating rates among downstream yarn manufacturers, and the pace of order placement from end-users. Should demand for the peak autumn/winter season materialize earlier than expected, the possibility of a further upward shift in market prices cannot be ruled out.

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