This week (December 20-24), the viscose staple fiber market was calm and prices were stable. Mainstream manufacturers were still in a stalemate, with a strong wait-and-see sentiment. Downstream, the main purpose is to replenish the inventory due to rigid needs, and the purchase volume is limited. Downstream rayon yarn is mainly needed to replenish the inventory, and the price is basically stable. The demand for textile terminals is difficult to see an improvement, and the purchase volume is limited. The price may continue to be stable in the future.
In December, the textile terminal weaving market continued to weaken, with the starting load in Jiangsu and Zhejiang being around 62%. Some factories have no new orders, and the risk of production inventory is high. In addition, the end of the year is approaching, and the terminal weaving start-up rate may continue to decline. At present, weaving factories are appropriately following up on procurement, and are mainly cautious in purchasing. Most weaving factories have raw material stocks of 1- In 2 weeks, a few weaving factories have a large amount of raw materials in stock.
According to the price monitoring of SunSirs, as of December 24, 2021, the domestic ex-factory quotation of 1.2D*38mm viscose staple fiber is 12,860 yuan/ton, which is the same as last week’s price. Since December, viscose staple fiber has continued to run weakly. From November 28 to December 17, the price of viscose staple fiber fell from 14,140 yuan/ton to 12,860 yuan, a drop of 1,280 yuan/ton, a drop of as much as 9.05%.
Upstream linters and pulp market
Due to the weakening viscose staple fiber market, the quotations of raw material pulp fell slightly, and chemical fiber factories are still negotiating with pulp agents. Inquiries for domestically produced dissolving pulp are limited, trading volume is under pressure, and prices are loosening along with imported pulp. In the spot market, recently, the average price of broadleaf dissolving pulp in the external market is around US$910/ton, and the price of domestic dissolving pulp is 6,500-7,000 yuan/ton. The actual transaction can be negotiated. The transaction was poor.
The trading volume of rayon yarn is light and the price remains stable.
This week (December 20-24), rayon yarn consolidated weakly, with stable prices and strong sentiment. However, the trading atmosphere was weak and downstream terminal demand was weak. According to the price monitoring of SunSirs, as of December 24, 2021, the average ex-factory price of rayon yarn (30S, ring spinning, first-class product) is 18,700 yuan/ton, which is the same as last week’s price.
Judging from the current market situation, rayon mills seem to be still not very receptive to viscose staple fiber, which has seen significant price cuts in the early stage. Due to insufficient order demand, yarn mills and traders continue to adjust yarn prices. The lack of orders continues to squeeze the prices of upstream raw materials. Domestic terminal demand is difficult to see improvement, and exports have improved slightly. Due to the recurrence of epidemics, manufacturers are cautious about the market outlook.
On the other hand, the product inventory of downstream textile mills is becoming more and more obvious. Coupled with the great pressure on cash flow before the Spring Festival, textile mills have begun to clear their warehouses and collect payment, and their willingness to purchase rayon yarn has dropped significantly.
Market outlook forecast
Judging from the experience of previous years, there will be a wave of “Indian Spring” market in the raw material market in mid-to-late December to replenish stocks for the Spring Festival. However, this year’s wave of “Little Indian Spring” may fail. The recent trend of the short-term sticky market mainly depends on the upstream and downstream games. requirements of downstream terminals. As the Spring Festival approaches, terminal factories are going on holiday and suspending production. There are many negative fundamental factors. It is expected that the viscose staple fiber and rayon yarn market conditions will remain weak, and prices will continue to stabilize or decline slightly.
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