14 April 2016
Viscose prices have begun slightly declining in the last two days, due to a weaker demand after prices have risen 15% in the last three months. Our weekly report covers the viscose/rayon staple fiber and filament markets over the last 12 months. Viscose spun yarn prices are also available. Cotton linter, cotton pulp and wood pulp prices on domestic and import markets are being tracked over the last 12 months, in addition.
Viscose prices have begun declining in the last two days in China, for the first time in three months.
From 13,800 yuan per metric ton, benchmark 1.5D has fallen 40 yuan to 13,760 yuan.
This could be seen as a very negligible fall, but it is also the first sign of a new downward trend on an always very volatile rayon market.
Prices have gained 12.76 cents per lb or 28 cents per kilo since they began bottoming out on January 14th. This is a rise of 15% in dollar terms.
Viscose traders have anticipated the new downward trend after demand has slowed down in the last weeks.
Viscose has clearly reached a peak level, especially compared with cotton and polyester.
Available quantities are larger than in the same period last year, due to a rise in operating rates from 83% up to 93%.
Prices could now further decline until demand eventually recovers, thanks to fiber substitution at spinning mills.
Spun viscose producers have been unable following the sharp rebound of fiber prices in the past three months and their margins have therefore decreased.
On export markets, 1.5D VSF is still traded at US$1.77 FOB Shanghai whereas 1.20D is sold at US$1.83, down one cent from last week.
Daily and Monthly updated viscose prices are available in our database: