Viscose fiber and spun yarn prices are now heavily falling in China, as the market remains confronted with excess inventories. Raw material costs have not similarly dropped, meaning that gross margins have probably disappeared at many viscose plants.
Viscose prices have continued falling in the last seven days in China, triggering a similar decline on the Pakistani market.
VSF prices have further lost 550 yuan per metric ton on China’s domestic market, or 4.3%.
Benchmark 1.5D fiber price has dropped to 12,200 yuan per MT this Thursday, down 9.3% in four weeks.
100% viscose yarn prices are now heavily falling, in line with the drop of material costs at spinning mills.
The excess inventories at viscose fiber and yarn plants continue depressing market prices.
In Pakistan, the same 1.5D VSF has lost another five rupees per kilo this week or 1.8%.
Prices have dropped 10 rupees or 3.6% in four weeks.
Raw material costs of viscose producers in China have very slightly declined in the last weeks, and viscose plants would now run at a loss, according to domestic market analysts.
As a consequence, operating rates could be lowered at fiber plants in order to support prices.
China’s textile production is also rebounding in this period of the year and inventories could be rapidly digested in the coming weeks, offering room for a rebound of viscose prices, as a result.
Source: Emergingtextiles
