The viscose staple fiber market sentiment is generally calm this week. Except for the quotations of individual factories that have been adjusted on the 3rd, generally speaking, the quotations of mainstream manufacturers are stable. The quotations of mid-range manufacturers are between 13,700-14,000 yuan/ton, and the quotations of high-end manufacturers are stable. The manufacturer’s quotation is around 14,200 yuan/ton. As the Sino-US trade war tends to ease, bulk textile raw materials have shown an upward trend, but viscose staple fiber has been slow to move. Why? Is the price of viscose staple fiber expected to rise in the future?
The industry’s operating rate is stable, and short-term quotations have stabilized
From supply On the other hand, mainstream viscose staple fiber manufacturers have increased their production suspensions in November, with the industry load at 89-81%, falling to 81% at the end of the month. Specifically, Xiaoshan Fulida viscose staple fiber plant has limited production by 50%. Chengdu Liya will reduce the production of viscose staple fiber equipment by 50% starting from November 1st and will continue until the end of January. Due to the relocation of the chemical pipeline of Siliya Co., Ltd., the two 60,000-ton viscose staple fiber production lines will undergo rotational maintenance for one month starting from November 8. The low and stable operating rate of the industry is a major reason why the price of viscose staple fiber has been declining since the beginning of November and has become temporarily stable from the end of November to now.
Downstream yarn mills mainly focus on rigid needs and limited demand
In mid-to-early November, both high-end and mid-range manufacturers began to sign orders at low prices, and downstream companies actively stocked up. After this large-scale centralized stocking, downstream raw materials were stocked as much as Around mid-December, however, the current rayon yarn market transactions are sluggish. Most yarn mills have a mentality of selling goods, and the market volume and price are still weak. Therefore, the demand for raw materials is low, and most of them are just to meet rigid needs. At present, there is not much downstream replenishment action. , the demand for viscose staple fiber is limited, which is not conducive to manufacturers raising prices.
In the early stage, viscose staple fiber manufacturers were promoting low prices, and downstream companies were actively replenishing supplies. At the same time, many large manufacturers were limiting production to reduce supply. The industry load was approaching 80%, and inventories were rapid. has dropped from 17.7 days to 8 days. The current industry inventory is stable at around 8 days in the short term. For viscose staple fiber manufacturers, profits have been in the red in the early stage. Now the inventory is reduced, and manufacturers have many orders on hand to execute, which makes them more aware of turning around losses. Although the demand is not strong, the possibility of price concessions is not Large, leading to price stalemate.
China-U.S. trade truce, viscose staple fiber prices may rise
On the evening of December 1, U.S. time, the heads of state of China and the United States met in Buenos Aires, Argentina. After the meeting, the two heads of state discussed Sino-US economic and trade issues and reached a consensus. Sino-US trade relations have eased. In the future, this good news almost gave blood to the entire industrial chain. Crude oil prices rebounded, and the prices of bulk textile raw materials rose. At present, the entire market has released positive signals. As one of the bulk raw materials, viscose staple fiber may also be affected, and the price of viscose staple fiber may rise.
Overall, although the demand from downstream yarn mills is not high, the current viscose Inventories in the staple fiber industry are low, and manufacturers have been losing money for many months. They have strong intentions to turn around losses. Coupled with the favorable truce in the Sino-US trade war this week, affected by rising crude oil and commodity prices, it is expected that viscose staple fiber will also increase in the later period. There will be some tentative pull-up operations. </p
