Viscose prices have further declined in the last seven days in China, mostly due to the weakness of demand from downward processors. The sharp fall of cotton and polyester fiber prices in the past weeks has pressured viscose prices.
Viscose fiber prices have more sharply dropped in the last seven days than in previous weeks.
Benchmark 1.5D VSF has lost 300 yuan per metric ton or 2.6%, at 11,400 yuan.
From their level four weeks earlier, prices have decreased by 1,000 yuan or 8.1%.
In three months, they have lost 14.8%, plunging by 22% from the same period a year earlier.
The weakness of demand is obviously behind the decline of viscose prices, as observed on other textile markets.
Apparel production is currently depressed, resulting in an accumulation of inventories at yarn and fabric plants.
The sharp fall of cotton and polyester prices in the last weeks has also pressured viscose prices.
Not only cotton pulp prices are dropping, but demand from spinning mills may shift from viscose to cotton or polyester.
On the spun yarn market, 100% viscose prices have less sharply dropped than VSF prices, offering larger margins to yarn plants.
Poly-viscose prices have heavily declined, over a significant fall of PSF prices.
Source: Emergingtextiles
