Market Analysis: Reasons For The Rise Of Viscose Staple Fiber In August

1. Viscose staple fiber mainstream factories hold orders in January, no pressure on short-term sales

According to the current domestic viscose staple fiber manufacturers' orders, they can be arranged to the end of August and the end of the month (about one month's production). At the same time, there are also large factories holding orders that have far exceeded the output of one month. Considering the digestion of inventory, it is expected that the physical inventory of viscose staple fiber factories will decline from 232000 tons on July 22 to 154000 tons around August 25. On the one hand, it means that even if there are no new orders for viscose staple fiber factories in August, there will be no obvious short-term sales pressure. On the other hand, even if the new orders in September are not well traded, the industry's inventory will start to accumulate from a relatively low level, and there will be no high warehouse pressure again in the short term.

2. The off-season gradually passes, and the profit in the peak season needs to increase moderately

From May to July, the off-season gradually passed. During this period, the cash flow of most viscose staple fiber enterprises was in a slightly positive or even negative state. Although the cost of viscose staple fiber was not significantly relaxed during the peak season, most factories still intended to expand profits during the off-season period, while the cost of viscose staple fiber did not show obvious loosening. Under the expected situation, viscose staple fiber factories may increase their profit space moderately.

3. The price difference between cotton and viscose continues to expand

The price difference between cotton and viscose staple fiber is still expanding, which is higher than that of the same period in 2019. In some areas such as Heze, the use of viscose staple fiber may be moderately increased by air spinning or other processes, which will alleviate some cost pressure and increase the consumption of viscose staple fiber to a certain extent.

4. The processing fee of man-made cotton yarn is acceptable, and the price acceptance of viscose staple fiber is increased

Although the current high price of human cotton yarn has not been fully settled, according to the mainstream yarn price, the spot processing fee of mainstream technology and model of human cotton yarn is acceptable, and the price level acceptable for viscose staple fiber is also increasing.