Last week (September 4-10, 2023), the prices of raw materials such as pulp and acid alkali generally increased, and the cost of viscose staple fibers was strongly pushed up. Last week, manufacturers introduced a new round of prices, and the overall price center took another step up. Some manufacturers had limited inventory and partial restrictions on order signing, and shipments were slightly tight. The operating rate of the viscose staple fiber industry has basically maintained, and the overall industry load has risen to around 79%. Under the support of downstream human cotton yarn costs, prices have been firm, and some negotiations have been conducted to reduce discounts and offer higher prices. However, the current increase in grey fabric is slightly weak, and transmission takes time. The sales of ring spun human cotton yarn have not improved significantly, and vortex spinning is relatively good. The demand from downstream weaving manufacturers is still relatively flat, and the improvement is not significant.

Viscose staple fiber price trend chart

According to the Commodity Market Analysis System of Business Society, last week (September 4-10, 2023), the price of viscose staple fiber slightly increased. As of September 10, the domestic factory quotation for 1.2D * 38mm viscose staple fiber was 13340 yuan/ton, an increase of 40 yuan/ton compared to the previous week, with a weekly increase of 0.30%.

In terms of cost: The prices of raw materials such as pulp and acid alkali have generally increased. Manufacturers in Hunan and Shandong produce broad-leaved dissolved pulp, and the quotation for domestic dissolved pulp has been raised to around 7300-7400 yuan/ton, an increase of 200 yuan/ton compared to the previous period. A new round of imported dissolved pulp quotations has been introduced, with Brazil’s LDC and South Africa’s broadleaf dissolved pulp costing 870 US dollars per ton, Czech needle dissolved pulp costing 880 US dollars per ton, and Austria’s needle dissolved pulp costing 890 US dollars per ton, an increase of 30 US dollars per ton compared to before.

Supply demand: Recently, there has been a slight increase in the start-up rate of the viscose staple fiber industry. Currently, the overall load of the industry has risen to around 79%, and the inventory pressure of manufacturers is not high. Some manufacturers have limited inventory and local restrictions on order signing, and shipments are slightly tight. The sales of ring spun human cotton yarn have not shown much improvement, while vortex spinning is relatively good. The demand from downstream weaving manufacturers is still relatively flat, and the improvement is not significant.

Downstream cotton yarn market

Chart of the price trend of human cotton yarn

Last week (September 4-10, 2023), under cost support, the price of artificial cotton yarn was strong, and some negotiated discounts were reduced. However, the current increase in grey fabric is slightly weak, and transmission will take time. As of September 10th, the average ex factory price of human cotton yarn (30S, ring spun, first class) was 17650 yuan/ton, an increase of 100 yuan/ton compared to the previous week, with a weekly increase of 0.57%. The start-up rate of the human cotton yarn industry has remained stable at around 70%.

Future Market Forecast

The golden nine silver ten peak season has arrived, and the market is looking forward to the traditional textile peak season. At present, the inventory of viscose staple fiber industry is at a medium to low level, which is expected to provide a strong impetus for the price increase of viscose staple fiber. Analysts from Business Society predict that in the short term, the overall market for viscose staple fibers and rayon yarn will be stronger, with prices slightly increasing.