High cost, low demand, weak operation of viscose staple fiber in July

In July, high cost and low demand. In July, the market of viscose staple fiber was weak, and the price fell slightly. The price of raw material dissolved pulp remains firm, the comprehensive cost remains high, and the pressure of manufacturers is difficult to ease, which still has strong support for the price of viscose staple fiber. Manufacturers actively support prices, most of them offer stable prices, and most of them say they would rather reduce production than reduce prices. Some viscose staple fiber factories adopt the method of reducing production speed, so as to alleviate the contradiction between the current market downturn and rising inventory, and delay their own pulp inventory consumption.


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In terms of demand, the traditional textile off-season entered in July, and the terminal demand showed no signs of improvement. In the short term, the willingness to take goods was not high. In addition, the high temperature in summer was coming, and the yarn enterprises started or showed a downward trend. The weak operation of the demand side restricted the rise of viscose staple fiber prices. The whole viscose staple fiber industry chain has entered a stalemate, and viscose staple fiber shows a situation of price without market.


Downstream cotton yarn prices fell significantly, popularity was relatively low, trading was light, and the overall inventory of the industry was still rising.


Trend chart of viscose staple fiber price


According to the price monitoring of the business club, the price of viscose staple fiber fell slightly in July. As of July 29, 2022, the domestic ex factory quotation of 1.2d*38mm viscose staple fiber was 15400 yuan / ton, down 260 yuan / ton from the beginning of the month, with a monthly decline of 1.66%.


Cotton yarn Market


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Trend chart of cotton yarn price


The price of cotton yarn fell significantly (30s, ring spinning, first-class products) with an average ex factory price of 18866 yuan / ton, down 367 yuan / ton from the beginning of the month, a monthly decrease of 1.91%.


Aftermarket forecast


The cost pressure is not reduced, and it is difficult for viscose staple fiber factories to make concessions, but the demand for textile terminals continues to be flat, the trading volume has always been general, and the downstream order taking volume has always been general, and the whole viscose staple fiber industry chain has entered a stalemate. Viscose staple fiber showed a trend of price without market, and factory inventory increased. Business analysts predicted that the price of viscose staple fiber would face downward pressure.


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