In July 2024, the focus of the domestic adhesive short fiber market slightly increased. The upstream raw material market is showing an upward trend, and the cost side support is still acceptable. The downstream market mostly maintains on-demand procurement, and the demand side performs steadily. Adhesive short fiber manufacturers mainly deliver orders, and the inventory level in the market continues to decline. Some sources of supply are tight, and favorable factors in the market dominate, resulting in a narrow increase in adhesive short fiber market prices.

Price trend of viscose staple fiber

According to the Commodity Market Analysis System of Shengyi Society, as of July 31st, the domestic ex factory price of 1.2D * 38mm adhesive short fiber was 13500 yuan/ton, an increase of 80 yuan/ton from the beginning of the month price of 13420 yuan/ton, with a monthly increase of 0.60%.

In terms of cost, the price of the main raw material dissolution slurry remains relatively high and stable. The price of broad-leaved dissolution slurry for domestic enterprises is reference to 7700 yuan/ton, and the price for external markets is reference to 940 US dollars/ton. The market prices of auxiliary materials such as liquid alkali and sulfuric acid continue to rise, and the cost support is strong. The average production cost of adhesive short fibers has increased.

In terms of supply and inventory, there have been frequent changes in the equipment of adhesive short fiber manufacturers during the month. Some adhesive short fiber equipment in Jiangxi region stopped briefly at the beginning of the month, some adhesive short fiber pre maintenance equipment in Xinjiang region restarted partially in the first half of the month, and some adhesive short fiber equipment in Hebei region underwent a 7-day rotation inspection in the middle of the month. Currently, the overall market supply is stable, and the operating rate of the adhesive short fiber industry in July was around 83.81%. The inventory level of various manufacturers is low, and some models in the field have tight supply, with good supply support.

On the demand side: The textile terminal market is in a low season of demand, and downstream cotton yarn manufacturers mostly execute early orders, mainly consuming raw material inventory, and replenishing in small quantities at low prices, resulting in mediocre performance on the demand side.

Future forecast

At present, the supply of adhesive short fibers in the market is tight, and the inventory in the market is low, providing some favorable support for the dissolution pulp market. It is expected that the market price of raw material dissolution pulp will stabilize at a high level next month, so it is expected that the cost support of adhesive short fibers will be good next month. Although the textile terminal market is still in the off-season of demand, there is a possibility of centralized replenishment by manufacturers as they approach the new round of signing orders for yarn mills. It is expected that there will still be some support from the demand side for adhesive short fibers next month. Overall, Shengyi Society expects the market for adhesive short fibers to remain stable in the short term, with limited price fluctuations or the possibility of a slight increase. Prices are expected to be in the range of 13500-13600 yuan/ton.