In August 2024, the downstream demand for adhesive short fibers continued to be weak, with mediocre performance and average on-site sales. The adhesive short fiber market maintained stable operation and prices remained stable. The market for dissolved pulp, the main raw material, is operating steadily, with decent cost support. Downstream cotton yarn factories have average purchasing power, mainly consuming raw material inventory. Overall, the on-site sales are stable, and the demand in the end market is still light. The price of viscose staple fiber market is temporarily stable, but the traditional textile boom season is coming soon, and industry players have strong price support emotions. In the future, attention should be paid to the follow-up of new orders from downstream yarn factories.

According to the Commodity Market Analysis System of Shengyi Society, as of August 30th, the domestic ex factory price of 1.2D * 38mm adhesive short fiber is 13500 yuan/ton, which is the same as the price at the beginning of the month.

In terms of cost, the price of the main raw material dissolution pulp remains relatively high and stable. The price of broad-leaved dissolution pulp for domestic enterprises is referenced at 7700-7800 yuan/ton, while the price of broad-leaved pulp for external markets is around 960 US dollars/ton, and the price of coniferous pulp is around 1040 US dollars/ton. The prices of auxiliary materials in the market have fluctuated, with prices in the upstream main raw material dissolution slurry market and sulfuric acid market remaining firm and stable. The liquid alkali market has experienced a narrow decline, while the adhesive short fiber market still has support.

Supply and inventory: The pre maintenance equipment in the adhesive short fiber market has resumed normal operation. In August, most manufacturers’ equipment was operating stably, and the on-site operating rate is at a high level. Currently, the industry’s daily operating rate is around 83.72%. However, with the gradual delivery of previous orders from manufacturers and an increase in on-site supply, the inventory levels of various adhesive short fiber manufacturers have increased compared to July, and the performance of the supply side is still acceptable.

On the demand side: The textile terminal market in August is still in a low season of demand, with downstream cotton yarn manufacturers mostly executing early orders and consuming raw material inventory. The overall operating rate of the industry is not high, and there is a small amount of replenishment during low prices, resulting in mediocre performance on the demand side. Price stalemate consolidation.

Downstream cotton yarn market

Downstream cotton yarn is consolidating weakly, with market execution orders being the main focus. Some manufacturers have adjusted prices narrowly, but overall prices remain stable. Overall shipments are average, inventory is basically maintained, and demand performance is weak. As of August 30th, the average ex factory price of human cotton yarn (30S, ring spun, first-class product) is 17375 yuan/ton, which is the same as the price at the beginning of the month.

Future forecast

The raw material side dissolution slurry market remains strong and stable, with continued positive support from the cost side. The market supply has increased, and some manufacturers have high inventory levels. With the arrival of the traditional textile peak season in September, downstream demand will improve, but it is difficult to have a significant improvement. Both positive and negative factors coexist in the market. Overall, it is expected that the adhesive short fiber market will mainly maintain stable operation in the short term, with limited price fluctuations or the possibility of a slight increase. The price is expected to be in the range of 13600-13700 yuan/ton.