In September 2023, the overall market for viscose staple fibers was relatively strong, and the price center shifted slightly upwards. The prices of viscose staple fiber raw materials such as dissolved pulp and auxiliary materials such as caustic soda have generally increased, with strong cost support, which has a strong support and driving effect on the price of viscose staple fiber. The start-up rate of the viscose staple fiber industry has basically maintained, and the overall industry load has increased to around 79%. Manufacturers’ inventory pressure is not high, and shipments are slightly tight. Downstream people’s cotton yarn is relatively flat, with few new orders and just a need for restocking. Overall, the shipment is stable, and the price is stable with some increase. The demand from downstream weaving manufacturers is still relatively flat, and the improvement is not significant.

According to the Commodity Market Analysis System of Business Society, in September 2023, the price center of viscose staple fiber shifted upwards. As of September 28, the domestic factory quotation for 1.2D * 38mm viscose staple fiber was 13480 yuan/ton, an increase of 180 yuan/ton from the beginning of the month, with a monthly increase of 1.35%.

In terms of cost: In September, the prices of raw materials such as dissolved pulp and acid alkali generally increased. Hunan and Shandong manufacturers produced broad-leaved dissolved pulp, and the quotation for domestic dissolved pulp was raised to around 7500-7600 yuan/ton, an increase of about 400 yuan/ton compared to the beginning of the month. A new round of imported dissolved pulp quotations has been introduced, with a transaction volume of 860 US dollars per ton for imported broadleaf dissolved pulp and around 870-880 US dollars per ton for needle leaf dissolved pulp, an increase of 30 US dollars per ton compared to before. In September, the auxiliary material caustic soda for viscose staple fibers continued to rise, which has a strong support and driving effect on the price of viscose staple fibers. The average market price of caustic soda in Shandong province was 795 yuan/ton on September 1st, and 1021 yuan/ton on September 28th, with a monthly increase of 28.4%.

Supply demand: The operating rate of the viscose staple fiber industry is basically maintained, and the overall industry load has risen to around 79%. The inventory pressure of manufacturers is not high, and shipments are slightly tight. The human cotton yarn factory mainly consumes inventory, and the enthusiasm for replenishment is currently not high. The sales of downstream ring spun human cotton yarn have not shown much improvement, while vortex spinning is relatively good. The demand of downstream weaving manufacturers is still relatively flat, and the improvement is not significant.

Downstream cotton yarn market

In September 2023, with cost support, the overall market for human cotton yarn remained stable, with prices steadily rising and overall sales average. As of September 28th, the average ex factory price of human cotton yarn (30S, ring spun, first class) was 17650 yuan/ton, an increase of 100 yuan/ton from the beginning of the month, with a monthly increase of 0.57%. There are not many new orders that just need to be restocked, and the overall shipment is average. The demand from downstream weaving manufacturers is still relatively flat, and the improvement is not significant.

Future Market Forecast

The textile market is currently in a traditional peak season, with strong cost support. The inventory of the viscose staple fiber industry is at a medium to low level, which is expected to bring a strong boost to the price of viscose staple fibers. Analysts from Business Society predict that in the short term, the overall market for viscose staple fibers and rayon yarn will be relatively strong, and prices will slightly increase.