15 November 2012
Viscose prices are slightly increasing in China, probably due to the state's support offered to cotton prices. Our weekly report covers the viscose/rayon staple fiber and filament markets with historical data back to 2006 available for download. Viscose spun yarn prices are also released. Cotton linter and cotton pulp trends are being tracked over the last 12 months, in addition.
Viscose staple fiber prices continued slightly rising in last seven days in China.
Average price for benchmark 1.5D was up 70 yuan per metric ton or 0.5%.
VSF prices prices had previously fallen in last months, over a lack of demand.
Spinners obviously need replenishing inventories which fell to very low levels.
In addition, China's state buying policy for maintaining cotton prices at relatively high prices is now offering some support to viscose prices.
VSF prices were increasingly cheaper than cotton prices in past months, possibly resulting in the current rebound in demand for viscose.
Viscose prices also fell in last months, compared with polyester.
Spun viscose prices stopped falling in last two weeks.
Raw material costs of viscose fiber producers are further sliding with cotton pulp prices losing 180 yuan per metric ton in last seven days, or 2.5%.
Prices fell 4.7% in last four weeks, offering much larger margins to VSF makers.
Filament yarn prices stopped dropping in last seven days, after heavily falling in previous weeks.
Leading global producer Lenzing group continues expecting prices to fall.
The Austrian company reports a rise of 12% in volume sales in first nine months of 2012 while prices of its fibers fell 11%.
Sales of Lenzing therefore declined 7% over the period.