SunSirs: The Cost and Demand of Viscose Staple Fiber Were Weak, and the Price Fell

Price trend

According to the price monitoring of SunSirs, the price of viscose staple fiber fell slightly last week (December 5-11). As of December 11, 2022, the factory quotation of 1.2D * 38mm viscose staple fiber in China was 13,000 RMB/ton; 200 RMB/ton lower than last week, with a weekly drop of 1.52%.

The price of rayon yarn was weak and declined. As of December 11, 2022 (30s, ring spinning, first class), the average ex factory price was 17,466 RMB/ton, down 100 RMB/ton from last week, with a weekly drop of 0.57%.

Analysis review

Last week (December 5-11), the cost and demand of viscose staple fiber were weak, and the quotations of individual factories were lowered or the preferential treatment was enlarged. The negotiated price of dissolving pulp fell, and the support on the cost side weakened. During the week, viscose staple fiber enterprises still mainly implemented early orders, and some downstream regions just needed replenishment, but most of the deals were made with low price and small orders. From the perspective of the downstream rayon yarn market, the rayon yarn price continued to be weak, the price fell, the market demand continued to be weak, the overall trading atmosphere was light, the inventory of the yarn mill continued to accumulate, and the factory operating rate declined slightly.

Supply and demand

Recently, the start-up rate of viscose staple fiber industry remained low, and the overall low start-up might continue under the loss operation of the manufacturer. In the short term, the enterprise still mainly executed early orders, and there was no lack of possibility for the enterprise's physical inventory to continue to increase. The demand for rayon yarn continued to be weak, and the operating rate of the factory dropped slightly. The manufacturer mainly made shipments, and the overall delivery atmosphere was light. The downstream just needed a small amount of procurement, and the weaving factory had arranged the Spring Festival holiday.

Market outlook

Recently, viscose staple fiber and downstream rayon yarn market were in a strong bearish mood, and the operation was cautious. The yarn market was in conflict with the current price of viscose, and the enthusiasm for entering the market was not good. Some yarn enterprises and terminal weaving factories had stopped work for holidays, and the market demand for raw materials had further decreased. Under the pressure of weak cost and weak demand, analysts of SunSirs predict that the price of viscose staple fiber may show a weak downward trend.

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