Weekly Report: Viscose Staple Fiber (22nd Aug-26th Aug)

Early of the week, some high grade plants or low stock plants are behind the requirement, some plants limited supply, withhold the goods, thus boosted price up. Moreover, with the coming of imitated furs busy season, rayon demand increased, to some extent, supported VSF price, boosted its sales volume and also its price up.

 

On upstream, cotton linter turns over is large this week, and its price is stable. According to the survey, the supply is in short this week, and most manufactures are waiting for the newly cotton linter come into the market. Downstream is generally overwhelmed with a wait and see attitude. The general quality in the market is letting down, thus downstream procurement are prudent. Xinjiang Common linter delivered price is quoted at 4900CNY/t, filament linter delivered price is quoted at 6000CNY/t. On cotton linter pulp, it sales well this week, now the strike price is generally around 11500CNY/t.

 

On downstream, for the influence of favorable storage factor, cotton price began to rebound, the fundamentals are slightly recovered. Now the third grade quotation is around 19159CNY, which increased 100CNY, comparing with that of the weekend. Rayon yarn sale kept stable, it also sales well on the market. For the influence of cotton yarn and polyester yarn production change, in some degree, it enlarged VSF demand. Now woven 30S is negotiated around 23300CNY, while knit 30S strike price is around 24300CNY.

 

To sum up, VSF price still has some upward room. The supply is enlarged by its high operation rate and high production rate. Downstream yarn sale also recovered, thus it is expected that in the short term, VSF price will continue to increase, but its increase range will not be big.