SunSirs: The Viscose Staple Fiber Market Was Operating Steadily, with Downstream Primarily Focused on Inventory Digestion

In late March, the market for viscose staple fiber generally exhibited a trend of "narrow fluctuations and stable operation." Influenced by earlier price increases, the pace of market trading slowed; downstream enterprises shifted their focus to depleting raw material inventories, and the industry's supply-demand dynamics entered a phase of tactical interplay, with prices stabilizing after undergoing minor adjustments.

In terms of price trends—according to data from SunSirs—the domestic production price for 1.2D viscose staple fiber stood at 12,900 RMB/ton on March 20; by March 29, it had risen to 13,180 RMB/ton, demonstrating a trajectory of initial upward movement followed by stabilization.

At the start of the week, bolstered by cost-side support and previously low inventory levels, some enterprises tentatively raised their quoted prices. Consequently, prices experienced a brief, slight uptick during the period of March 23–27. On March 27, the benchmark price for the 1.2D specification stabilized at 13,180 RMB/ton, marking a weekly increase of approximately 2.17%. While the overall price level shifted upward compared to the previous week, the subsequent upward momentum slowed, and the market entered a wait-and-see phase.

Market analysis

On the supply side, production facilities within the viscose staple fiber industry were generally maintaining stable operations. Operating rates at most enterprises remained steady, with only a few facilities in specific regions undergoing maintenance or adjusting production loads; consequently, there was no significant overall supply shortage. Corporate inventory levels remained low, and—bolstered by the fact that previously signed orders were still in the fulfillment phase—manufacturers  faced no inventory pressure. Some enterprises remained cautiously optimistic regarding future market prospects; their quoted prices remained firm, and the volume of high-priced goods circulating in the market remained limited.

Demand remained the defining characteristic of the market; the downstream sector as a whole was exhibiting subdued performance, focusing primarily on depleting existing raw material inventories, while the pace of new procurement orders had slowed. In downstream segments—such as rayon yarn and textiles—demand during the traditional "Golden March and Silver April" season had materialized only moderately; most enterprises were replenishing stocks strictly to meet immediate operational needs, eschewing large-scale inventory building. Having concluded the latest round of order signings, some downstream manufacturers had shifted their focus last week toward order fulfillment; consequently, their immediate demand for the raw material—viscose staple fiber—had waned. Market transactions were driven mainly by essential, need-based purchases, resulting in an overall trading atmosphere that appeared somewhat lackluster.

Cost factors were providing a certain level of support to the market; last week, the market for dissolving pulp—a key raw material—remained stable, while prices for auxiliary materials such as liquid caustic soda and sulfuric acid continued to hold firm. This upward shift in the cost base for chemical raw materials had established a floor of support for the price of viscose staple fiber. However, downstream demand had not yet shown any significant increase in volume; consequently, the support derived from the cost side had proven difficult to translate directly into upward momentum for prices, leaving the market locked in a dynamic tension between "cost-driven support" and "weak demand."

Market outlook

The market for viscose staple fiber is expected to maintain its steady trajectory. On the supply side, there is no risk of a large-scale release of new production capacity, and the prevailing pattern of low inventory levels is likely to persist. The pace at which downstream enterprises deplete their existing stocks will directly influence the market's direction; should downstream demand for restocking—driven by essential needs—intensify, it could stimulate a recovery in market trading activity; conversely, prices would likely remain subject to volatile consolidation. Overall, the market lacks the driving forces necessary for significant price swings and is highly likely to be characterized primarily by narrow-range fluctuations, with a focus on maintaining stable prices while moving inventory.

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