Price trend

In February 2025, the price center of the viscose staple fiber market increased. As of February 28th, the average market price of viscose staple fiber was 13,720 RMB/ton, an increase of 260 RMB/ton from the beginning of the month, with a monthly increase of 1.18%. The upstream raw material market prices remained firm, with cost support remaining. The inventory level in the market was not high, and coupled with the increasing operating load of downstream yarn factories, businesses had sufficient confidence in the future. Some viscose staple fiber manufacturers have raised their prices, resulting in an increase in high priced sources in the market and a rise in the monthly average price of viscose staple fiber.

Analysis review

In terms of cost: In February, the market price of the main raw material for viscose staple fiber, dissolved pulp, was high. Due to the continued tight situation of the South American rainy season or export restrictions in Southeast Asia, the price of dissolved pulp may remain high, supporting the cost of viscose staple fiber. The market price of auxiliary liquid alkali has risen at a high level, while the market price of sulfuric acid has fallen narrowly. The market price of raw materials has shifted upwards, and the average production cost of viscose staple fibers has increased.

Supply and demand: From the supply side perspective, February 2025 falls around the Spring Festival, and the pre holiday stocking and post holiday resumption pace of domestic textile factories will directly affect short-term demand. In February, there was little fluctuation in the supply of viscose staple fibers in the market, and the inventory levels of various manufacturers were not high. There was no sales pressure at the moment, and the supply side provided some upward momentum for the market. The operating rate of downstream cotton yarn market was not high, and prices were mainly stagnant. Downstream yarn manufacturers planned to resume work slightly later. Although viscose staple fiber manufacturers have raised their quotes and increased on-site inquiries, actual transactions are limited and demand side performance is poor.

Market outlook

The main material dissolution slurry market and auxiliary material liquid alkali market have strong prices, while the high cost of viscose staple fibers remains stable. In the short term, the viscose staple fiber market is expected to operate stably, with little fluctuation in industry supply and low inventory levels on site, and there is currently no significant inventory pressure. March is the traditional peak season for textiles, and downstream yarn mills may release their demand for replenishing inventory in a concentrated manner. SunSirs’ analysts predict that the domestic viscose staple fiber market will be strong in March, with prices remaining stable and fluctuating, mainly rising. Prices are expected to be around 13,700-14,000 RMB/ton for acceptance.

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