SunSirs: Bullish Factors Prevailed, and the Market for Viscose Staple Fiber Strengthened

Market Dynamics Analysis of Viscose Staple Fiber: First Half of May 2026

Since the beginning of May 2026, the domestic market for viscose staple fiber has experienced a steady upward trend, driven by a confluence of factors: cost support, tight supply, and restocking demand from downstream sectors. Taking the mainstream 1.2D*38mm specification as an example, prices—starting at 13,700 RMB/ton at the beginning of the month—underwent two consecutive upward adjustments; as of May 15, the price had stabilized at 13,980 RMB/ton, marking a 2.04% increase over the half-month period and demonstrating a strong market willingness to hold prices firm.

Price Trends: A Stair-step Ascent; Strong Market Sentiment Supporting Prices

According to price data monitored by SunSirs, the price of viscose staple fiber during the first half of May followed a distinct trajectory: "sideways consolidation — stepped ascent — stabilization at a high level."

1. May Day Holiday Stability Period (May 1 – May 5): Market trading was light, with quotes holding steady at the pre-holiday level of 13,700 RMB/ton, showing no significant fluctuations.

2. First Post-Holiday Price Hike (Starting May 7): As factory quotes were raised, prices climbed to 13,880 RMB/ton—a 1.31% increase—while downstream yarn mills followed suit with purchases based on their immediate needs.

3. Second Round of Price Support and Stabilization (May 11 – 15): Market quotes edged upward once again to 13,980 RMB/ton—broadening the total increase to 2.04%—and subsequently stabilized at this elevated level, demonstrating the supply side's strong pricing power.

This round of price hikes does not represent a sudden, one-off surge; rather, companies have been pushing prices upward in a phased manner based on their costs and order volumes. Market acceptance has been gradually improving, low-priced supplies have all but vanished, and the focal point of actual transaction prices has shifted upward in tandem with the quoted rates.

Upstream Raw Materials: Cost support continued to strengthen, providing enterprises with ample confidence to uphold prices.

The cost structure of viscose staple fiber is primarily composed of dissolving pulp, along with auxiliary materials such as caustic soda, sulfuric acid, and carbon disulfide; since May, the strengthening of raw material prices has provided crucial support to market conditions.

Core Raw Material—Dissolving Pulp: International pulp mills demonstrate a strong resolve to uphold prices; meanwhile, the volume of imported pulp arrivals is unlikely to see any significant short-term increase. With domestic pulp mills facing minimal inventory pressure, pulp prices are expected to maintain their upward trajectory, thereby providing a rigid cost floor that supports viscose staple fiber prices. According to industry data, the month-on-month increase in dissolving pulp prices for May is projected to exceed 4%, directly driving up production costs for viscose manufacturers.

Rising Auxiliary Material Prices: Prices for chemical auxiliaries—such as liquid caustic soda and sulfuric acid—rose during May, further eroding the profit margins of viscose manufacturers and serving as a key catalyst for companies to raise their price quotes. Driven by this mounting cost pressure, major industry players—including Yibin Grace, Chengdu Grace, and Shandong Hengtian Hailong—have successively raised their ex-factory quotes, thereby shifting the overall market price center upward.

Bolstered by dual tailwinds—favorable cost conditions and tight supply—viscose manufacturers continue to maintain low inventory levels and hold substantial order backlogs. Their stance on pricing has shifted from reactive to proactive, significantly strengthening their market leverage.

Downstream Demand: Supported by essential consumption, buyers are following up on an "as-needed" basis, while expectations for inventory replenishment continue to build.

Downstream performance generally exhibits a pattern of "weak fundamentals, strong expectations," with both rigid demand purchasing and restocking requirements jointly underpinning this round of price increases.

Essential purchasing demand is steadily being released: prices in the downstream rayon yarn market have risen in tandem, with the mainstream negotiated price for R30S ring-spun yarn climbing to 16,800–17,000 RMB/ton. To ensure production continuity, yarn mills are maintaining a steady stream of essential purchases for viscose staple fiber, and low-priced inventory is being rapidly absorbed.

Anticipation of Inventory Replenishment Rises: As the peak production season for autumn and winter apparel approaches, downstream textile enterprises—seeking to mitigate the risk of rising raw material prices—have begun to gradually replenish their inventories, leading to an improved trading atmosphere in the market. Concurrently, given that viscose staple fiber serves as a key substitute for cotton, the narrowing price spread between cotton and viscose has prompted some companies to "substitute viscose for cotton," thereby indirectly boosting market demand.

A wait-and-see sentiment persists: the downstream apparel and home textile sectors have not yet fully entered their peak season. Consequently, some yarn mills remain resistant to high raw material prices, adopting a strictly "buy-on-demand" approach to procurement; large-scale inventory stocking has not yet commenced. This situation has placed a certain cap on the magnitude of price increases for viscose staple fiber, resulting in a trend of steady upward movement rather than a sudden surge.

Market Outlook: The supply-demand balance remains tight, and the market retains upward price momentum.

In the short term, the fundamental logic underpinning viscose staple fiber (VSF) prices remains unchanged: on the cost side, prices for dissolving pulp and auxiliary materials remain firm; on the supply side, manufacturers’ inventories are low while operating rates remain high; and in the downstream sector, both essential purchasing and restocking expectations persist. It is anticipated that throughout the mid-to-late period of May, the VSF market will continue to exhibit a firm trend; manufacturers' resolve to uphold prices will remain the dominant factor driving market dynamics, with the price center of gravity expected to fluctuate within the range of 13,900 to 14,000 RMB/ton.

In the medium to long term, two key factors warrant close attention: first, whether downstream end-market demand will continue to be robustly unleashed following the arrival of the peak season, thereby supporting increased procurement by yarn mills; and second, the price trajectory of dissolving pulp—the primary raw material—as a continued upward trend in pulp prices would further escalate costs for viscose manufacturers, whereas a decline would likely limit the potential for price appreciation.

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