Viscose fiber prices have begun slightly dropping in China, due to a lack of demand in the post-holiday period. Inventories are kept at minimum level, due to current uncertainties over the China-US trade negotiations.
Viscose fiber prices have given signs of weakness in the past seven days in China, with the benchmark indicator losing 70 yuan per metric ton or 0.5%.
Demand remains at a low level from downstream processors although progressively rising since the end of lunar year holidays.
Inventories will be kept at minimum levels until trade negotiations with the United States will have been eventually completed.
With new production capacities being planned for the current year, viscose producers will be confronted with surging competition.
They are expected to keep their operating rates unchanged in order to avoid letting market shares to competitors.
As a result, viscose prices could be expected resuming their long-term decline initiated by early 2017, or about two years ago.
Source: Emergingtextiles
