Viscose staple fiber market stagnant

The viscose staple fiber market remained flat due to weak downstream demand from cotton yarn factories. While viscose staple fiber production held steady at around 78 per cent industry capacity, yarn manufacturers focused on on-demand procurement, keeping overall viscose staple fiber demand subdued.

Viscose staple fiber prices remained stable at 13,500 ¥/ton for 1.2D * 38mm grade. This stability is attributed to tight inventory at viscose staple fiber factories and relatively high raw material costs, particularly dissolution slurry. However, rising sulfur sulfonic acid prices, another key raw material, add upward pressure on production costs.

Despite cost support, downstream yarn factories are reluctant to accept further price increases for viscose staple fiber due to compressed profits. This lukewarm demand is expected to continue in the short term as high temperatures might lead to reduced cotton yarn production.

However, low viscose staple fiber inventories and existing factory orders point towards a potentially firm market in the near future. With stable raw material prices and limited viscose staple fiber supply, the market is forecasted to remain largely unchanged in the short term, with prices hovering between 13,500-13,600 ¥/ton.