No Turning Point Of Fiber Prices

After the sharp rise in prices in 2007, the chemical fiber industry is no longer in sight. The prices of major chemical fiber varieties have dropped sharply, of which viscose staple fiber prices have fallen by nearly 18000 yuan.

Market participants expect that under the background of the reduction of orders in the domestic textile processing industry, the price of the chemical fiber industry has already turned inflexion, and the price drop will continue.

Since 2008, due to the rapid expansion of production capacity and slow start of downstream demand, the prices of chemical fiber products, especially spandex and viscose, have been more and more volatile.

Among them, the price of viscose, spandex and other related products has dropped significantly. By the end of March, viscose staple fiber had fallen below 20 thousand yuan, and the market of viscose filament was not optimistic. The price of Spandex Products also showed a sharp downward trend.

According to the relevant statistics of the first textile network, the price of viscose filament has been stable for more than six months at the level of 34000 yuan / ton, and viscose staple fiber price has reached 22200 yuan / ton before and after the end of October 2007, and has maintained a slow decline since late December. After that, the price of the viscose staple fell slowly, with an average weekly price reduction of 100-200 yuan / ton, which has recently fallen below 20000 yuan important support point, and the cost price of nearly 18000 yuan has caused market psychological panic. This is also the first time that the mainstream price of sticky market has been reduced to less than 20 thousand yuan since last June.

Similarly, viscose filament market is not optimistic.

The price of spandex 40D began to decline after reaching 95000 yuan / ton in late March 2007, and dropped to 70000 yuan / ton by the end of 2007.

In 2008, the price of spandex fell undiminished, and fell to 62000 yuan / ton at the end of February. At present, some lower prices have even dropped to 55000-56000 yuan / ton.

The latest report of Orient Securities's textile industry indicates that the downturn of downstream demand has dragged down the market of chemical fiber industry.

Because of the high CPI in China, the government has tightened up under the pressure of inflation. At the same time, after the new labor law has been implemented this year, the labor costs have increased significantly and the appreciation of the renminbi has continued to weaken, which has weakened the price advantage of China's textile exports, and the export situation of the textile industry has become even more serious.

In addition, the decline in export tax rebate and the increasing trade frictions, as well as the anti-dumping and special safeguard measures imposed by many countries on China's textiles, have made China's textile industry face new difficulties.

Against this background, the textile industry is weak, and this year's peak season is clearly behind the previous years.

According to the statistics of the first textile network, there are not many large single orders outside the viscose staple fiber market, so small orders are few, and the domestic demand market is weaker. As a result, the inventory of many cotton yarn manufacturers is also at a high level, and the price is lower than the previous period by 500 yuan / ton, so the demand for viscose staple fiber is also low.

The same is true for spandex.

Analysts pointed out that, due to the reduction of orders in the domestic textile processing industry, especially in foreign trade orders, there was a clear indication that the downstream markets of spandex were fading, and the continuous release of new capacity of spandex further aggravated the contradiction between supply and demand in the market.

The industry generally believes that the risk of spandex is still relatively large, spandex products still have room for decline.