February coincides with the Spring Festival, but the market for viscose short fibers is relatively warm, with prices rising. Before the year, manufacturers had no pressure on inventory, downstream demand was insufficient, and adhesive short fibers remained stable in operation. After the new year, the inventory of factories is not high, and the maintenance of equipment in factories in Shandong continues, resulting in a decrease in supply. The trend of raw materials is strong, and cost support is still acceptable. The opening of adhesive short fibers is good, and most adhesive short fiber factories have raised their prices to a certain extent. Moreover, the production of yarn and terminals has gradually increased, and there may be an increase in demand. However, the overall investment atmosphere has not significantly improved, and manufacturers mainly focus on executing orders. The overall stability of downstream human cotton yarn is relatively strong, with a slight increase in quotes from human cotton yarn factories and a slight reduction in discounts, while inventory is basically maintained.

According to the commodity market analysis system of Business Society, in February 2024, the overall price of adhesive short fibers remained stable and increased. As of February 29th, the domestic factory quotation for 1.2D * 38mm adhesive short fiber is 13560 yuan/ton, an increase of 380 yuan/ton from the beginning of the month, with a monthly increase of 2.88%.

In terms of cost: In February, the trend of raw material dissolution slurry was relatively strong, and cost support remained strong. The price of imported broad-leaved dissolved pulp is around 880 US dollars per ton, and the price of coniferous dissolved pulp is around 910 US dollars per ton. At present, the production of dissolved slurry in Hunan and Shandong facilities in China is around 7600 yuan/ton, with a slight increase in price. Actual orders are negotiated.

Supply and demand: In February, the inventory of adhesive short fibers was limited. After the holiday, manufacturers continued to maintain their equipment, resulting in a decrease in supply and reluctance to sell. Downstream human cotton yarn factories have started construction one after another, replenishing goods as needed. Human cotton yarn is stable and relatively strong, and the market’s low-priced supply has slightly decreased.

In February, the overall market for human cotton yarn remained stable and slightly strong, with prices following the slight increase in raw material viscose short fibers. Some yarn factories slightly increased their quotations and reduced their discounts. Overall shipments were average, and inventory was basically maintained. As of February 29th, the average ex factory price of human cotton yarn (30S, ring spun, first grade) was 17550 yuan/ton, an increase of 225 yuan/ton or 1.30% compared to the beginning of February.

Future Market Forecast

Recently, the price center of raw material dissolution pulp has been strong, with strong cost support and tight inventory of adhesive short fibers. At the end of February, some adhesive short fiber equipment maintenance in Shandong region is approaching its end, and the supply of adhesive short fibers may increase, and the inventory situation may improve. The production of yarn and terminals is gradually increasing, and there may be an increase in demand. Business Society analysts predict that in the short term, the trend of adhesive short fibers may be mainly stable, medium to strong; The market situation of human cotton yarn will be mainly stabilized and operated steadily.