The Supply And Demand Side Is On The Move, Viscose Staple Fiber Or Continue To Slide.

In recent years, the price of viscose staple fiber has been falling all the way. Spinning enterprises are facing increasing pressure on stock yarn cost and poor sales.

Downstream in the overall climate is also not easy to take orders, do not make profits, return to lose money, so there are many small businesses shut down and stop production news.

Upstream market stability

Viscose staple fiber upstream market prices remain stable.

Cotton lint, the price is supported by upstream raw materials, the market performance is strong, Shandong long velvet price 3700-3750 yuan / ton, Xinjiang 3050-3200 yuan / ton.

In terms of dissolving pulp, the dissolving pulp is weak and the price continues to fall, which is affected by the shutdown of downstream devices. A mainstream pulp factory in East China has temporarily stopped producing cotton pulp, and has now converted into pulp. Up to now, the price of domestic dissolving pulp is 6700-6800 yuan / ton.

Factory losses are serious.

Due to the serious price loss of viscose staple fiber recently, some factories have already stopped production in a small area.

Among them, Nanjing chemical fiber issued a notice recently announced that since the second half of 2018, viscose staple fiber market continued to slump, the company viscose staple products sales difficulties, inventory continued to rise, the company decided to suspend production temporarily from now on to repair inventory.

The company will determine the recovery time according to the viscose staple market situation, and it is expected that the production time will not exceed three months.

Since October last year, Nanjing chemical fiber has shut down the production line of viscose filament with an annual capacity of 80 thousand tons. At the end of last year, it completed all the relevant procedures for the pfer of the stock of Lan Jing (Nanjing), and no longer owns the stock of Lan Jing (Nanjing).

Downstream is running thin ice

Due to the escalation of the Sino US trade war, the two countries impose tariffs on each other, the domestic textile export orders are blocked, the demand weakens, and the production and marketing of the supply chain is clear.

According to enterprises in Shandong, Jiangsu and other places, yarn orders have declined significantly since May, although enterprises have been reducing their quotations for a long time, the market mentality is still pessimistic.

As of May 23rd, a factory in Shandong Weifang 32S cotton yarn quoted price of 15200 yuan / ton (including tax factory), compared with May 20th, the price fell 200 yuan / ton, more volume and a slight discount.

At the moment, downstream yarn enterprises are facing a dilemma: continue production, increase inventory pressure, stop and wait, and lose more.

Business is running on thin ice.

To sum up, the price of upstream cotton lint has been suppressed. Viscose has been running continuously since the second half of 18 years. The inventory of production enterprises has continued to go up, and the production capacity has been concentrated in the market, resulting in oversupply of viscose staple fiber market, lower operating rate, and downstream yarn is also internal and external troubles. Spot futures are all down, and at the same time, Sino US trade relations are tense.

It is expected that the viscose staple fiber will continue to slide in the late stage, and the actual paction price will be around 12000 yuan / ton.