Viscose prices have slightly bottomed out in the past week in China after heavily falling in March. A series of VSF facilities have been shut down for limiting losses and supporting prices whereas inventories have fallen at spinning mills.
Viscose fiber prices have bottomed out in the past seven days in China, rising 200 yuan per metric ton or 1.6% before stabilizing ahead of a long weekend.
VSF prices had previously fallen in March with average price for 1.5D fibers plunging by 778 yuan per metric ton or 5.8%.
Excess inventories at spinning mills had actually depressed prices.
A blast at a chemical plant in China has resulted in additional controls and lower production levels in the viscose industry.
Several facilities had previously been shut down in order to limit losses and support prices.
VSF prices could now remain stable at their new level of around 12,500 yuan per MT.
Raw material costs are eventually declining, in line with a fall of demand from viscose plants.
As a result, VSF producers could enjoy a return to profits and avoid raising their price offers.
Surging VSF Exports
China’s VSF exports have surged 17% in dollar terms in the last year, after rising 49% in 2016 and 8.2% only in 2017.
In the last 10 years, China’s VSF exports have enjoyed a rise of nearly 400% in dollar terms.
China’s share of global trade had already reachd 36% in 2017.
Source: Emergingtextiles
