Viscose Market Summary (Jan 1-15, 2011)

VSF market improved somehow but the trading activity of cotton linter market was not brisk. Suppliers quoted firmly amid tight supply but buyers in consideration of high cost and increasing output of transformed paper pulp did not show high enthusiasm.

VSF plants increased purchasing volume of cotton linter pulp after New Year's Day and small discounts were available, so the trading volume rose. Dissolving pulp suppliers in import market stopped offering while the higher quotation in China spot market was 19500yuan/mt.

VSF offers were revised up and sales got some improvement but low-priced deals were mainly done. Sales and production were generally in a balance but buyers were still sensitive to high-priced goods. Rayon yarn prices were relatively steady.

VFY market did not change much. Suppliers provided sales promotions to attract customers to replenish stocks. Downstream plants will gradually have holidays from Jan 20, so VFY sales will slow down.

*CCF dissolving pulp price introduction:
Since suppliers on import market stop offering, we suspend updating CCF price for imported dissolving pulp, but the index will be published again after new offers are released.