Viscose fiber prices have stayed unchanged in the last seven days in China, also staying frozen in Pakistan which is increasingly dependent on its imports of Chinese VSF. China’s viscose exports to Pakistan but also to Indonesia have surged since 2013, as reflected by our below available 5-year data.
Viscose prices have remained firm in the last seven days in China, over a recent fall of inventories and lower production levels.
Recent blast at a key chemical plant in China has triggered a wave of safety inspections whereas maintenance operations may also result in a series of viscose plants shutting down for a few weeks.
Market prices have remained fully frozen in the past week, in line with a similar stability of material costs.
If considering the average VSF price in the month-to-date, the benchmark 1.5D fiber has already lost 2.1% at 12,389 yuan per metric ton.
After they have started to fall from the beginning of 2017, VSF prices have now reached a 3-year low.
Prices could stay unchanged until after after May Day holidays, when they will start possibly rising in line with seasonal trends.
In Pakistan, VSF prices have also stayed unchanged, as the domestic market is directly linked to the VSF prices from China on import market.
Surging viscose use in Indonesia and Pakistan
As reflected by our below review of China’s VSF exports in the last five years, Pakistani imports from China have surged to very high levels, rising 16.9% in 2017 and again 19.2% in 2018, in volume terms.
Pakistan now accounts for 19.2% of total Chinese VSF exports which have more than doubled in five years.
China’s sales to Indonesia have also surged whatever the strong local production of cellulosic fibers in the country.
Exports to Bangladesh have rocketed since 2013, however from a low level.
Chinese data confirm that viscose use is rising, partly due to investment in new capacities by domestic and foreign groups in China.
Source: Emergingtextiles