SunSirs: Demand Was Weak, Viscose Staple Fiber Industry Chain Was Running Weakly in November

Price trend

According to the price monitoring of SunSirs, the price of viscose staple fiber in November was basically stable. As of November 29, 2022, the ex factory quotation of 1.2D * 38mm viscose staple fiber in domestic areas was 13,200 RMB/ton, basically unchanged compared with the beginning of the month.

The price of rayon yarn was weak and declined. As of November 29, 2022 (30S, ring spinning, first class), the average ex factory price was 17,766 RMB/ton, down 100 RMB/ton from the price at the beginning of the month, and with a monthly drop of 0.56%.

Analysis review

In November 2022, the cost end support of viscose staple fiber market weakened, the demand continued to be poor, the industry chain lacked confidence, and the price was weak and stable. It was difficult to improve downstream of rayon yarn trading, mainly to digest the inventory. Terminal lacked orders, the operating rate gradually declined, and some area lower price to promote shipment, and the price of rayon yarn continued to decline.

The weak demand is hard to change, the new viscose staple fiber transaction is limited, the physical inventory may increase, and the supply pressure remains. Rayon yarn continues to be weak, mainly consuming its own inventory. Some are just in need of purchase. The factory's operating rate has slightly declined. The manufacturers mainly ship, and the terminal demand has not improved. In the short term, the willingness to take goods is not high, and the demand side continues to operate weakly.

Market outlook

Recently, the supply side of viscose staple fiber may be loose, while the downstream demand continues to be negative. In the situation of weak support at the cost side and poor demand, the confidence of the industrial chain is still insufficient, and the viscose staple fiber market is difficult to get rid of the weak situation. Analysts from SunSirs predict that the prices of viscose staple fiber and rayon yarn will continue to operate in a weak and stable manner next month.

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