In April, under the influence of multiple negative factors such as a lack of new orders, continued low production and sales rates, and a slow increase in inventory, viscose staple fiber The mainstream center of gravity of the market has loosened and started to go downhill. The market price index fell from the year’s high of 15,600 yuan/ton to 14,000 yuan/ton. The decline reached 10% in one month. It has been running steadily since May 10. After returning from the May Day holiday, under the month-long profit promotion, mid-to-high-end manufacturers finally obtained a certain amount of relocation at a price around 13,800-14,200 yuan/ton acceptance. As viscose staple fiber started its downward path, the price of cotton viscose gradually expanded, and the price of cotton once again surpassed the price of viscose staple fiber.
How has the viscose staple fiber market performed before and after the market price correction?
From the cost side, the market price of the main raw material dissolving pulp has not changed significantly, and the support is relatively strong. From the supply side, in terms of terminal demand Despite the continued sluggishness, the operating rate of various manufacturers still maintains the production restriction strategy. Since mid-April, the operating rate has dropped below 80% and has remained around 70% so far. Although the recent adjustments in southwest equipment have caused the market to Supply has increased slightly, but the increase in the industry’s operating rate has been limited. As of now, the industry’s operating rate has risen to 76.46%. In addition, from the current market point of view, manufacturers’ immediate orders are weak, and the overall production and sales rate is not good. They focus on executing orders in hand. Coupled with the impact of the news that Shandong Hailong device is about to start up and the supply will increase, the wait-and-see mood of the industry is getting stronger due to the cautious attitude of the industry. , there is no good news released to continue to follow up.
From the demand side, under the continued sluggish market conditions, before the May Day holiday, The news that yarn companies in some regions are going on holiday ahead of schedule has lengthened the procurement cycle of the viscose staple fiber market. It has entered the traditional textile off-season in May. The trading volume is limited. The inventory of each factory continues to increase. The market demand side is negative. There will be a phased return after the holiday. At the bottom, most manufacturers are under long-term sales pressure and have passively lowered their offer prices to give priority to goods.
According to customs data statistics, my country’s total import volume of viscose staple fiber in April 2021 was 18,272 tons. A year-on-year increase of 62.68%, the total export volume was 28,091 tons, a year-on-year increase of 16.19%. The export volume of viscose staple fiber has dropped significantly compared with previous months, indicating that foreign trade demand is also in a sluggish pattern, and exports have been suppressed to a certain extent, which is also one of the reasons for the decline in domestic market prices.
On the whole, after two years of loss-making operation, we are currently in the stage of production capacity consolidation. In the second half of 2021 The viscose staple fiber market is still expected to improve, but there are many uncertain problems and resistances during the operation. Global trade frictions, geopolitical crises and public health emergencies restrict the development of internal and external circular economy. At present, downstream and terminal textile orders have not been significantly boosted by good news. The market circulation of bulk raw materials is subject to many factors. Raw material transportation, international supply and demand, and national policies all constrain the economic operation of the entire industry. In the short term, The viscose staple fiber market will be weak in the off-season. It is expected that there will be a phased concentrated stocking market in the third quarter. The “Golden Nine and Silver Ten” itself is also a traditional peak season, and the market will usher in a certain improvement.
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