Global VSF market remains stable amid economic uncertainty

In the latter half of November 2024, the global Viscose Staple Fiber (VSF) market prices stabilized, due to low production costs and weak demand across key regions. In Europe, VSF prices held steady at $2,350/MT FOB Hamburg by November 29, reflecting limited consumption due to economic concerns in the Eurozone. This was compounded by an accumulation of wood pulp inventories in European ports and a 3.9 per cent drop in caustic soda prices, which eased input costs for manufacturers.

In Asia, the Chinese VSF market also remained stable, with low production costs and subdued demand. Wood pulp prices fluctuated, while caustic soda prices dropped by 5.7 per cent.

Domestic production increased, but high imports and weak demand from the paper mill and textile sectors put pressure on prices. Despite these challenges, China’s textile exports remained resilient, with a 3 per cent year-on-year increase for January to October 2024.

In the US, the VSF market also stabilized, with prices at $2,040/MT CFR Texas. Stable import volumes and declining caustic soda prices helped maintain equilibrium, though weak demand in the textile sector, as indicated by a 0.2 per cent decline in the apparel manufacturing index, limited price movement.