In August 2023, the market of the viscose staple fiber industry chain rebounded, and prices continued to rise slightly. The factory’s order signing volume has remained stable, inventory pressure is low, and the market is experiencing a partial supply shortage. The manufacturer’s quotation has increased slightly multiple times, making prices easy to rise but difficult to fall in the short term. The start-up rate of the viscose staple fiber industry has slightly rebounded, mainly due to the increase in equipment load in Xinjiang. Currently, the overall industry load has risen to around 75%. Downstream cotton yarn has rebounded, especially with better shipments such as vortex spinning. Some foreign orders have emerged, and downstream weaving manufacturers have relatively increased their purchasing enthusiasm. Some distributors and traders have also seen a significant increase in their shipping prices, and the market is generally looking forward to the September market.

Viscose staple fiber price trend chart

According to the Commodity Market Analysis System of Business Society, in August 2023, the viscose staple fiber market showed a sustained slight strengthening trend. As of August 31, the domestic factory quotation for 1.2D * 38mm viscose staple fiber was 13080 yuan/ton, an increase of 120 yuan/ton compared to July, with a monthly increase of 0.93%.

In terms of cost: In August 2023, the raw material dissolving pulp market remained stable and organized, with stable prices and stable cost support for viscose staple fibers. The quotation for domestic dissolved slurry is around 7100-7200 yuan/ton. The quotation for imported broadleaf dissolved pulp is around 840 US dollars per ton, and for needle leaf dissolved pulp is around 850-860 US dollars per ton.

Supply demand: Recently, there has been a slight increase in the start-up rate of the viscose staple fiber industry. As of the end of this month, the overall industry load has increased to around 75%, and there is not much inventory pressure from manufacturers. The market signing atmosphere has slightly improved, with downstream stocking performance and improved purchasing atmosphere.

Downstream cotton yarn market

Chart of the price trend of human cotton yarn

In August 2023, human cotton yarn showed a trend of recovery, especially with a decrease in inventory of vortex spinning and a slight increase in prices. As of August 30, the average factory price of human cotton yarn (30S, ring spinning, first-class product) was 17375 yuan/ton, an increase of 225 yuan/ton compared to the end of July, with a monthly increase of 1.31%. The operating rate of human cotton yarn has slightly rebounded to around 68.5%. Downstream weaving enterprises have slightly improved their demand for human cotton yarn, with some foreign orders appearing and downstream procurement enthusiasm relatively increasing.

Future Market Forecast

The golden nine silver ten peak season is approaching, and the inventory of the viscose staple fiber industry is currently at a medium to low level, which is expected to provide a strong impetus for the price increase of viscose staple fibers. On the demand side, both domestic and foreign clothing terminals are expected to switch to the replenishment cycle, which is expected to bring about an improvement in demand for viscose staple fibers. The industry is expected to continue to improve, and the overall market mentality is improving. The market is looking forward to the September market. Currently, the new price of Saideli has not been introduced, and there is a possibility of an increase. Analysts from Business Society predict that the focus of the viscose staple fiber and rayon yarn market will slightly increase in the short term, and the market is looking forward to a golden nine silver ten.