SunSirs: Signed Orders on Demand, Viscose Staple Fiber Prices Rose Slightly in August

Price trend

According to the commodity market analysis system of SunSirs, the market price of viscose staple fiber rose slightly in August. As of August 29, the average market price of viscose staple fiber was 13,040 RMB/ton, up 60 RMB/ton from the same period last month, with a monthly increase of 0.46%.

Analysis review

In August 2025, downstream viscose staple fiber companies signed contracts based on demand, leading to stable prices with slight increases. The overall market for dissolving pulp, the main raw material, remained stable, with relatively stable cost support. Supply fluctuations in the industry were minimal, and on-site inventory levels were low. Downstream rayon yarn mills replenished their stocks appropriately based on demand, leading to a strong price support among industry players. This led to an increase in high-priced goods on the market, and the center of the viscose staple fiber market rose slightly.

Costs:

In August, the market price of raw material dissolving pulp remained relatively stable, with domestic dissolving pulp priced at around 6,700 RMB/ton, while overseas hardwood pulp prices hovered around $800/ton and softwood pulp prices around $870/ton. The prices of auxiliary materials, such as liquid caustic soda and sulfuric acid, remained largely stable with minor fluctuations, maintaining a relatively stable cost base.

Supply Fluctuations Were Minimal

Supply in the industry was declining, with the daily operating rate remaining at 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 had decreased, resulting in minimal supply fluctuations, with some manufacturers maintaining low inventory levels.

Downstream Restocking Based on Demand

The operating rate of downstream rayon yarn plants increased slightly, with minimal price fluctuations. As of August 29th, the price of ring-spun R30S yarn in Jiangsu Province was around 17,100 RMB/ton, and that of ring-spun R40S yarn was around 18,300 RMB/ton. The market was traditionally in the off-season, and downstream rayon yarn transactions were suboptimal. Only certain types of vortex-spun rayon yarn were seeing relatively strong export orders. Spinning mills were primarily consuming raw material inventories, and due to urgent needs to replenish stocks, demand remained stable.

Market 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 limited support from the cost side.

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 not high. Therefore, it is expected that the supply side of the viscose staple fiber market will not well supported in the short term; in September, the terminal market will gradually turn from sluggish to prosperous, and downstream yarn mills will have a certain improvement in the market conditions 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 increase in September.

On the whole, the main raw material dissolving pulp market may remain weak and stalemate, the overall supply is sufficient, and downstream spinning mills mainly sign orders on demand, with the possibility of improvement. Under the mixed news on the market, viscose staple fiber manufacturers may maintain their previous quotations. Therefore, analysts from SunSirs predict that in the short term, the domestic viscose staple fiber market will be stable with small fluctuations, and the price may increase slightly. The price is expected to be 13,000-13,200 RMB/ton acceptance.

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