SunSirs: Focusing on Order Execution, the Viscose Staple Fiber Market Was Consolidating

Price trend

According to the commodity market analysis system of SunSirs, last week (August 18-24, 2025), the market price of viscose staple fiber was weak and stable. As of August 24, the average market price of viscose staple fiber was 13,040 RMB/ton, which was the same as the price during the same period last week’s previous week.

Analysis review

Last week (August 18-24, 2025), the market for raw material dissolving pulp was generally stable, with limited support from the cost side. The finished product inventory of various viscose staple fiber manufacturers was not high, and supply-side support still existed. The downstream market mainly consumed raw material inventory, and the overall market sales speed was stable. The viscose staple market price was consolidating.

Cost: Last week (August 18-24, 2025), the market price of raw material dissolving pulp remained relatively stable, with limited cost support. As of August 24, the price of domestic dissolving pulp was around 6,700 RMB/ton, while the overseas price of hardwood pulp was around $800/ton and that of softwood pulp was around US$870/ton. The market prices of auxiliary materials such as liquid caustic soda and sulfuric acid remained stable with minor fluctuations, providing general cost support.

Supply Fluctuated Slightly

Supply in the industry declined, with the daily operating rate remaining around 75%. Inventory levels at various viscose staple fiber manufacturers had declined compared to previous periods, with downstream yarn manufacturers taking delivery on demand. Overall inventory levels in the viscose staple fiber market decreased, and supply fluctuations had been minimal. Some manufacturers had low inventories, and positive support from the supply side was limited.

Downstream replenished stocks mainly on demand

The operating rate of downstream rayon yarn plants had increased slightly, with minimal price fluctuations. As of August 24, the price of ring-spun R30S yarn in Jiangsu Province was around 17,100 RMB/ton, and that of ring-spun R40S yarn waws around 18,300 RMB/ton. The market was traditionally in the off-season, and downstream rayon yarn market transactions were suboptimal. Only certain types of vortex-spun rayon yarn were seeing some improvement in export orders. Spinning mills were primarily consuming raw material inventories and were urgently looking to replenish stocks, with no significant improvement in demand.

Future outlook:

On the raw material side, the market for dissolving pulp (the main ingredient) and sulfuric acid (the auxiliary ingredient) is likely to remain generally stable, while the market for liquid caustic soda may see a narrow decline. Therefore, SunSirs anticipate a downward trend in viscose staple fiber prices in the short term, with insufficient cost support.

Supply and demand side: The operating rate of viscose staple fiber market equipment may not fluctuate much, and the inventory level of some manufacturers is relatively high. Therefore, it is expected that the supply side of the viscose staple fiber market will not be well supported in the short term; the terminal market is still in the traditional off-season, and new orders are limited. Downstream yarn mills have a certain risk aversion sentiment and may maintain the signing of just-in-time orders. It is expected that the driving force from the demand side of the viscose staple fiber market will be average in the short term.

Overall, the market for dissolving pulp, the primary raw material, is likely to remain weak and stagnant, with ample overall supply. Downstream spinning mills are primarily placing orders based on demand. Amidst mixed market news, viscose staple fiber manufacturers are likely to maintain their previous quotes. Therefore, analysts of SunSirs predict that the domestic viscose staple fiber market will remain largely stable with minor fluctuations in the short term, with prices expected to be between 12,900 and 13,100 RMB/ton.

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