Last week (May 13-19, 2024), downstream demand continued to be flat, with on-demand procurement being the main focus. The raw material dissolution pulp market was generally stable, and the pressure on viscose short fibers was weak, maintaining stable operation, and prices remained stable. The downstream cotton yarn market has maintained stable production, with some models experiencing shortages. However, the overall market is still mainly focused on purchasing in demand, with no obvious signs of improvement on the demand side. Downstream yarn factories are mainly consuming inventory, and the release of new orders on site is limited. Viscose short fiber manufacturers are mainly executing shipments, and the overall market sales speed is stable.

According to the commodity market analysis system of Business Society, last week (May 13-19, 2024), the price of viscose short fibers remained weak and stable. As of May 19th, the factory price for 1.2D * 38mm adhesive short fiber in China is 13180 yuan/ton, which is the same as last week’s price.

Supply side: Last week (May 13-19, 2024), the operating rate of the adhesive short fiber industry remained stable, and production remained stable. The overall market supply has slightly decreased. The inventory of various manufacturers is still at a low level, and there is currently no inventory pressure. There is some positive support on the supply side.

In terms of demand: downstream people mainly execute orders in the cotton yarn market, with little price change. Downstream enterprises have average purchasing power, with multi-dimensional support and on-demand procurement. Currently, the new round of signing has ended, and the operators have entered a period of inventory consumption.

In terms of cost: Last week (May 13-19, 2024), the market price of raw material dissolution slurry remained stable, while the market price of auxiliary material liquid alkali and sulfuric acid remained stable, and the cost center remained stable. At present, the production of dissolved slurry in Hunan and Shandong facilities in China is around 7700 yuan/ton, and the price remains stable. Actual orders are negotiated.

Downstream cotton yarn market

Last week (May 13-19, 2024), downstream cotton yarn saw weak consolidation, with the market mainly executing orders. Some manufacturers adjusted prices narrowly, resulting in a slight decline in overall prices. Overall shipments were average, inventory remained stable, and demand was weak. Downstream demand did not show a significant improvement, and actual transactions on the market were limited. As of May 19th, the average ex factory price of human cotton yarn (30S, ring spun, first-class) was 17225 yuan/ton, which is the same as the previous week’s price.

Future Market Forecast:

The upstream raw material market is stable, with low inventory from various manufacturers and stable production and sales. Downstream enterprises have average purchasing power, and they mainly deliver early orders. The overall market sales speed may continue to be stable. The replenishment cycle for downstream yarn enterprises is approaching, and the focus of viscose short fiber manufacturers is mainly on signing and shipping. Business Society analysts predict that the viscose short fiber market will remain stable in the short term, with market prices generally stable. The cotton yarn market will continue to operate weakly and steadily, with viscose short fiber prices expected to be between 13000-13200 yuan/ton.