In October 2023, the overall stable operation of viscose staple fibers was observed, with slight fluctuations in prices. In the first half of the month, cost support was strong, and the factory introduced a new round of price policies, with a slight increase in quotations; The overall market shipments have slowed down, with manufacturers’ inventory slightly increasing in the latter half of the month, and some quotations have slightly decreased towards the end of the month. The high prices of raw materials such as dissolved slurry and auxiliary materials such as caustic soda have a supportive effect on the price of viscose staple fibers. Downstream people’s cotton yarn is relatively flat, with a strong wait-and-see attitude. There are not many orders, and the focus of local negotiations has slightly declined. Downstream weaving manufacturers’ demand is still relatively flat, and the improvement is not significant. Most people are concerned about the market from November to December.

According to the Commodity Market Analysis System of the Business Society, in October 2023, the prices of viscose staple fibers fluctuated slightly, with a price range of 13480-13600, which remained stable overall. As of October 31, the factory price for 1.2D * 38mm viscose staple fibers in China was 13500 yuan/ton, which is basically the same as the price of 13480 yuan/ton at the beginning of the month.

In terms of cost: In October, the price of raw material dissolved pulp remained stable at a high level. Hunan and Shandong manufacturers produced broadleaf dissolved pulp, with domestic dissolved pulp priced around 7500-7600 yuan/ton, imported broadleaf dissolved pulp priced around 880 dollars/ton, and needle leaf dissolved pulp priced around 890-900 dollars/ton. Currently, some negotiations are underway. The high price of raw material acidity and alkalinity has slightly decreased, and it has not yet been transmitted to the viscose staple fiber, but there are slight signs of looseness overall.

Supply demand: The operating rate of the viscose staple fiber industry is basically maintained, and the enthusiasm for raw material procurement is low. In the latter half of the month, the inventory pressure of manufacturers slightly increased. The human cotton yarn factory mainly consumes inventory, and the enthusiasm for replenishment is currently not high. The human cotton yarn is relatively flat, and there are not many new orders that just need to be restocked. The overall demand is average.

Downstream cotton yarn market

In October, the price center of viscose remained flat, and the cost support for human cotton yarn was strong. However, demand was light, and the yarn factory maintained a cautious wait-and-see approach. Due to local losses, the production enthusiasm of the yarn factory was not high, and the focus of local negotiations slightly declined. As of October 31st, the average ex factory price of human cotton yarn (30S, ring spun, first-class product) was 17500 yuan/ton, a decrease of 150 yuan/ton compared to the previous month, with a monthly decrease of 0.85%. There are not many new orders that just need to be restocked, and the overall shipment is average. The demand from downstream weaving manufacturers is still relatively flat, and the improvement is not significant.

Future Market Forecast

The price of raw material dissolved pulp remained stable at a high level, but the acid and alkali prices slightly decreased, and cost support slightly declined. The market procurement enthusiasm is not high, downstream demand is average, and the traditional peak season for textiles is about to pass. Most people are concerned about the market from November to December. Analysts from Business Society expect the market for viscose staple fibers and rayon yarn to remain stable in the short term, with prices likely to decline slightly.