Last week (December 12-19), the price of viscose staple fiber continued to fall, and the cost side support was weak. During the week, viscose staple fiber enterprises were still mainly engaged in the implementation of early orders, and some downstream regions just needed replenishment, but most of the deals were made with low price small orders. The news of production reduction of a high-end large factory in China was announced, and the overall production of the Group was reduced by about 30%. From the perspective of the downstream human cotton yarn market, the price of human cotton yarn is weak and stable. Factories in some areas cut prices to promote sales. The market demand continues to be weak. The overall trading atmosphere is light, and the overall cotton mills have slightly increased their holiday closures.

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 12-18). As of December 18, 2022, the factory quotation of 1.2D * 38mm viscose staple fiber in China was 12880 yuan/ton; It dropped by 120 yuan/ton compared with the previous week, with a weekly drop of 0.92%. The price of human cotton yarn is weak and stable. As of December 19, 2022 (30S, ring spinning, first class), the average ex factory price is 17466 yuan/ton, which is the same as the price of the previous week.

Supply and demand

Last week, the operating rate of viscose staple fiber industry was basically maintained. At present, the overall load of the industry is about 60.4%. This week, major factories began to reduce production, and the operating rate will decline. 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

A new round of price policy was introduced for viscose factories, and the production restriction policy was introduced for large factories. The overall price may be supported under the supply reduction. However, 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 be weak and stable.