SunSirs: The Viscose Staple Fiber Market Was Weak and Stable, and the Market Outlook Is Still Bearish

Price trend

According to the price monitoring of SunSirs, this week (September 19-23), the price of viscose staple fiber fell slightly. As of September 23, 2022, the domestic ex-factory price of 1.2D*38mm viscose staple fiber was 14,160 RMB/ton, down 100 RMB/ton from last week, a weekly decrease of 0.70%, and down 700 RMB/ton from the price at the beginning of September.

Analysis review

This week (September 19-23), viscose staple fiber continued to run weakly, and the price fell slightly. The market expects that the prices of major manufacturers would be lowered at the end of the month, and downstream buyers were mostly wait-and-see, and the trading of viscose staple fiber was light. The operating rate of the viscose staple fiber industry remained low, with an overall load of about 55%. Manufacturers may continue to operate at a low operating rate when operating at a loss. The price of rayon yarn was weak and stable, and the trading atmosphere was general. Most of them were still mainly purchased for rigid needs. The inventory of rayon yarn rose slightly. The wait-and-see atmosphere became stronger and purchases were cautious.

The price of rayon yarn fell along with it. As of September 23, 2022 (30S, ring spinning, first-class products), the average ex-factory price was 18,300 RMB/ton, showing a situation of having price but no sales, which was the same as last week's price, and a monthly decline of 300 RMB/ton of 1.79% compared with the price at the beginning of the month.

From the analysis of the reasons, the cost support was not reduced. There were no new quotations for dissolving pulp recently, and it was mainly to maintain stability. The viscose staple fiber industry's operating rate remained low, with an overall load of about 55%. Under the loss-making operation of manufacturers, the overall low operating rate might continue. In terms of demand, the downstream orders for rayon yarn were not as expected, the terminal demand showed no signs of improvement, the willingness to take goods was not high in the short term, and the demand side was running weakly, which restricted the price of viscose staple fiber. The operating rate of factories increased to around 70%. Overall inventories remained high. But soon facing the National Day holiday, there was a plan to reduce and stop production and vacation.

Market outlook

The textile terminal demand continued to be flat, the transaction was always average, the downstream order volume was always average, and the entire viscose staple fiber industry chain entered a stalemate. Entering September, the peak season of traditional textile demand can drive a certain demand, but it has never improved. Several major manufacturers may discuss the price of dissolving pulp in October next week, and it is also rumored that a new round of price policies may be introduced next week. At present, the expectations of the downstream "golden September and silver October" are relatively unsatisfactory, and they are pessimistic about the market outlook, and viscose staple fiber is still bearish in the short term. Analysts of SunSirs predict that the overall price of viscose staple fiber will continue to decrease.

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