Last week (December 5-11), the cost demand of viscose staple fiber was weak, and the quotations of individual factories were lowered or the preferential treatment was enlarged. The negotiated price of dissolving pulp fell, and the support on the cost side weakened. During the week, viscose staple fiber enterprises still mainly implemented early orders, and some downstream regions just needed replenishment, but most of the deals were made with low price small orders. From the perspective of the downstream human cotton yarn market, the human cotton yarn price continued to be weak, the price fell, the market demand continued to be weak, the overall trading atmosphere was light, the inventory of the yarn mill continued to accumulate, and the factory operating rate declined slightly.

Price trend of viscose staple fiber

According to the price monitoring of the business community, the price of viscose staple fiber fell slightly last week (December 5-11). As of December 11, 2022, the factory quotation of 1.2D * 38mm viscose staple fiber in China was 13,000 yuan/ton; 200 yuan/ton lower than last week, with a weekly drop of 1.52%. The price of human cotton yarn was weak and overcast. As of December 11, 2022 (30s, ring spinning, first class), the average ex factory price was 17466 yuan/ton, down 100 yuan/ton from last week, with a weekly drop of 0.57%.

Supply and demand

Recently, the start-up rate of viscose staple fiber industry remains low, and the overall low start-up may continue under the loss operation of the manufacturer. In the short term, the enterprise still mainly executes the early orders, and the enterprise’s physical inventory is likely to continue to increase. The demand for human cotton yarn continues to be weak, and the operating rate of the factory drops slightly. The manufacturer mainly makes shipments, and the overall delivery atmosphere is light. The downstream just needs a small amount of procurement. The weaving factory has arranged a Spring Festival holiday.

Future market forecast

Recently, viscose staple fiber and downstream rayon yarn market are in a strong bearish mood, and the operation is cautious. The yarn market is in conflict with the current price of viscose, and the enthusiasm for entering the market is not good. Some yarn enterprises and terminal weaving factories have stopped work for holidays, and the market demand for raw materials has further decreased. Under the pressure of weak cost and weak demand, analysts of the business community expect the price of viscose staple fiber to show a weak downward trend.