Last week (December 18-24), adhesive short fibers operated weakly and prices remained stable. Sporadic new orders for essential needs have been completed, and dealers lack confidence in the future market. With a bearish attitude, they have partially reduced prices and are still waiting for a new round of prices from major manufacturers. However, most market insiders generally believe that there is still some room for a decline in adhesive prices. The startup rate is basically maintained, and the overall industry load is currently around 81.7%. Downstream people find it difficult to ship cotton yarn, with sporadic and essential purchases and transactions mainly resulting in an increase in inventory. In addition, under most loss making operations, there has been an increase in early holiday plans. Most market participants generally believe that prices may still be slightly lowered.

According to the commodity market analysis system of Business Society, last week (December 18-24), the overall price of viscose short fibers remained stable. As of December 24, the domestic ex factory quotation for 1.2D * 38mm viscose short fibers was 13180 yuan/ton, which is the same as the previous week’s price.

In terms of cost: Last week (December 18-24), the price of dissolved pulp remained stable, and a new round of imported dissolved pulp quotations was introduced, with a price of around 900 US dollars per ton for broadleaf dissolved pulp and 910 US dollars per ton for coniferous dissolved pulp. Domestic Hunan manufacturers produce dissolved slurry, Shandong equipment maintenance, quoted around 7500-7800 yuan/ton, stable price, actual order negotiation.

Supply and demand: Last week (December 18-24), the operating rate of the adhesive short fiber industry was basically maintained, and the overall industry load is currently around 81.7%. Downstream procurement enthusiasm is low, sporadic orders for replenishment are needed, and there is a slight increase in inventory pressure on manufacturers. The human cotton yarn factory mainly consumes inventory, and the enthusiasm for replenishment is currently not high. The human cotton yarn is relatively flat, and there are not many new orders that require replenishment. Overall demand continues to be weak.

Downstream cotton yarn market

Last week (December 18-24), human cotton yarn continued its weak performance, with low trading volume and temporarily stable prices. Sales are poor, overall shipments are slowing down, and the operating load of human cotton yarn has slightly decreased to around 66.5%, while inventory has also slightly increased. Most small factories maintain production in a state of slight loss, with some under significant pressure. The market lacks confidence in the later stage, and some small factories have partial intentions to reduce or stop production under pressure from multiple parties. The market generally believes that there is little improvement before the Spring Festival, or there is a possibility of further decline. As of December 17th, the average ex factory price of human cotton yarn (30S, ring spun, first-class) is 17150 yuan/ton, which is the same as last week’s price.

Future Market Forecast

The price center of raw material dissolution slurry is strong, with strong cost support, but the market procurement enthusiasm is still not high. Downstream demand continues to be weak, with most small factories maintaining production in a slightly loss state. Some small factories are under great pressure, and some have intentions to reduce or stop production. The market lacks confidence in the later stage and is bearish on the market before the Spring Festival. Business Society analysts predict that in the short term, the market for viscose short fibers and artificial cotton yarn will continue to operate weakly, with prices mainly experiencing a slight bearish decline.