SunSirs: In June, Viscose Staple Fibers Were Stable and Declined, and the Market Is Bearish in July

Price trend

According to the Commodity Market Analysis System of SunSirs, the price of viscose staple fiber remained stable and slightly decreased in June. As of June 30th, the domestic factory quotation for 1.2D * 38mm viscose staple fiber was 13,220 RMB/ton, a decrease of 140 RMB/ton from the beginning of the month, with a monthly decrease of 1.05%.

Analysis review

In June 2023, the price of viscose staple fibers remained stable and slightly decreased, and the entire industry chain was weak, prices fell, and the performance of rigid downstream was poor. Downstream rayon yarn factories had weak purchasing power, and bearish sentiment continued to decline. There were not many actual transactions, and the overall market was waiting for the introduction of price policies from high-end manufacturers. Except for some factories with inventory pressure, other manufacturers were relatively controllable. The price of raw material dissolving pulp weakened, and the overall cost support had weakened. The downstream rayon yarn trading slowed down, and the production enthusiasm of the yarn factory was not high due to losses. The price center had slightly declined, and the overall operating load had a downward trend.

In June, the price center of raw material dissolving pulp weakened. Domestic dissolving pulp: two manufacturers in Shandong and Hunan produced broadleaf dissolving pulp. The price of imported dissolving pulp had been lowered. The transaction of broad-leaved dissolving pulp was 870-880 dollars/ton, and that of coniferous dissolving pulp was 880 dollars/ton.

Downstream demand for rayon yarn was weak, and shipments from yarn factories were slowing down, especially for ring spinning and vortex spinning. The overall negotiation space had increased, the market had weakened, prices had declined, and transactions were average. The pressure on product inventory was gradually increasing, and the overall operating load had a downward trend. Under inventory pressure in some enterprises, there was a phenomenon of price reduction and promotion. According to the Commodity Market Analysis System of SunSirs, as of June 30th, the average ex factory price of rayon yarn (30S, ring spinning, first-class products) was 17,400 RMB/ton, a decrease of 166 RMB/ton compared to the beginning of the month. As of 30th, it is difficult for the demand in the textile terminal market to significantly improve, and yarn enterprises were also difficult to have a strong position. They often adjusted their negotiation space based on their own shipment situation.

Market outlook

The overall buying and selling atmosphere in the short-term market was difficult to improve, and costs were weakening. Without significant improvement in terminal demand, the market will enter a wait-and-see adjustment period. The market is bearish in July, and analysts from SunSirs predict that the market for viscose staple fibers and rayon yarn will be weak, stable, and volatile in the short term.

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