Last week (April 8-14, 2024), downstream weakness and lack of positive news support in the market led to a downward trend in the viscose short fiber market. A new round of prices was introduced by major manufacturers, and prices from different manufacturers were lowered to varying degrees, causing the price center of the viscose short fiber market to shift downwards. The market for raw material and main material dissolved pulp remains stable, while the auxiliary material liquid alkali market continues to be weak. The sulfuric acid market is partially pushed forward, and the cost support for the adhesive short fiber market is limited; Downstream yarn factories still mainly consume early inventory and replenish small quantities as needed. The demand side has shown weak performance, and downstream demand has not shown a significant improvement. Real transactions on the market are limited, and there is a lack of positive news support in the market.

According to the Commodity Market Analysis System of Business Society, the overall price of viscose short fibers declined last week (April 8-14, 2024). As of March 14th, the domestic factory quotation for 1.2D * 38mm adhesive short fibers is 13320 yuan/ton, a decrease of 180 yuan/ton from last week’s price, with a weekly decrease of 1.33%.

In terms of cost, the market price of raw material dissolved pulp remains stable, with imported broadleaf dissolved pulp priced at around 880 US dollars per ton and needle leaf dissolved pulp priced at around 910 US dollars per ton. At present, the production of dissolved slurry in Hunan and Shandong facilities in China is priced at around 7600 yuan/ton. The price center of the auxiliary material liquid alkali market has shifted downwards, while the price of sulfuric acid market has slightly increased. The cost performance is average, and the average production cost of viscose short fibers has decreased.

In terms of supply: Last week (April 8-14, 2024), the operating rate of the adhesive short fiber industry remained around 79.21%, with a slight decrease in production compared to last week. During the week, adhesive short fiber manufacturers had to shut down their equipment for maintenance, resulting in a decrease in on-site supply. There is currently no inventory pressure on the site.

In terms of demand: downstream people mainly execute orders in the cotton yarn market, and the price trend is downward. Downstream procurement willingness is not strong, and multi-dimensional rigid demand procurement is maintained. The demand side has constraints on the raw material market from bottom to top.

Downstream cotton yarn market

Last week (April 8-14, 2024), downstream cotton yarn operated weakly and steadily, with the market mainly executing orders. The overall price slightly declined, and some yarn factories saw partial price declines in their quotations. Overall shipments were average, inventory was basically maintained, and demand side performance was weak. Downstream demand has not improved significantly, and actual transactions on the market are limited. As of April 14th, the average ex factory price of human cotton yarn (30S, ring spun, first-class) was 17525 yuan/ton, a weekly decrease of 0.43%.

Future Market Forecast:

The trend of the upstream raw material market is not good, and the cost support is weakened. Although the inventory of manufacturers is not high, the demand side performance is weak, with primary demand for goods and average trading activity on the market. Business Society analysts predict that the market for viscose short fibers will remain stable in the short term, and prices may slightly increase. The market for artificial cotton yarn will continue to operate weakly and steadily.