VSF/Spandex/Nylon Weekly Report（Mar.19th-Mar.23rd）

VSF price continued to be weak and the actual transactions were general this week. The leading quotation of VSF was around 15,300-15,700 Yuan/ton in the market, declined 800 Yuan/ton compared with last week. Due to the mild trading atmosphere and lower purchasing enthusiasm of upstream raw material, the VSF market was lack of confidence. Although the inventories of leading manufacturers headed by Tangshan and Sateri were appropriate, the price was relatively strong, but there were no transactions in spun rayon yarn market, which made VSF price showed sliding tendency. At present, the market attention was high, parts of yarn manufacturers and market makers were waited for buying with the lower price 15,000 Yuan/ton. As for upstream market, the price of staple cotton linter and cotton pulp was moving sideways, the trading atmosphere was in a stalemate and the price went weak while maintaining the stability. To sum up, because fundamentals for upstream and downstream were difficult to improve, VSF price was still in weak consolidation this week.

The price of nylon chips kept weak and the actual transactions were general this week. At present, the leading quotation of conventional spinning nylon chips was around 24,400-24,500 Yuan/ton, and the high-speed spinning was around 24,200-24,400 Yuan/ton, generally declined 200-300 Yuan/ton compared with last week. Due to the mild trading atmosphere and lower purchasing enthusiasm of upstream raw material, the purchasing intention of nylon chips was low. Now the leading negotiation price of the semi-bright FDY70D/24F was around 28,500-29,000 Yuan/ton in Shengze market and the transaction center went lower. In aspect of POY market, the price of the semi-bright chips was down. The market asked the price of POY 85D/24F at 28,300-28,500 Yuan/ton, low-end product was around 26,800-27,300 Yuan/ton. The sales volume was insufficient, but the price of POY 85D/48F was higher at 29,500 Yuan/ton. In addition, the price of the semi-bright chips in DTY market slightly adjusted. The transaction price of DTY70D/24F was around 32,000-32, 5000 Yuan/ton, which dropped slightly. It expects that it will continue to be consolidated by weakness.

The total order quantity was continued to be shortage in textile industry, which resulted in sustained situation of Spandex trading environment. The spandex 20D adjusted to 56,000 Yuan/ton and 40D adjusted to 43,000 Yuan/ton, the quotation generally dropped 200 Yuan/ton. Judged from the decline, most of the buyers belonged to wait-and-see condition in the downstream. The manufactures hoped to increase sales by enlarging the preferential space of the order, but the high cost of the upstream market made the spandex manufacturers close to loss and some one already reached the deficit. As for the device, parts of enterprises gradually decided to put off the production time of new project followed the early days affected by the high costs suppressed, weak purchase and incompetent operating expectation in afternoon market and so on. It is said that, in April, a domestic strength Enterprise was disposed to stop production and limited the quantity of some devices in Guangdong Province. It expects that the sellers will continue to provide much discount and the quotation of spandex will be adjusting.