1).Cost side support still exists.

        The upstream raw material end main material dissolution slurry market is strong and stable. As of now, the price of domestic dissolution slurry is around RMB7800 /ton, the price of outer broad-leaved slurry is around USD960/ ton, and the price of coniferous slurry is around USD 1040 /ton. The cost side of the Viscose staple fiber market is still supported by favorable factors.

2).Stable supply, low inventory.

        The supply of Viscose staple fiber industry is at a high level, and most manufacturers have stable equipment operation. The on-site operating rate is at a high level, and the current daily operating rate of the industry is around 84.79%. The early parking and maintenance equipment in Xinjiang has not been restarted yet, and the overall market supply is high. The inventory levels of Viscose staple fiber manufacturers are low, and the on-site supply is slightly tight. The supply side provides some upward momentum for the market.

3).The demand has not shown significant improvement.

        Although it has entered the traditional peak season for textile production in September, there is no obvious sign of improvement in the textile terminal market. Downstream yarn manufacturers have insufficient new orders, making it difficult to increase their enthusiasm for raw material procurement. Manufacturers are holding on to signing orders for essential needs, and the new round of orders on site is expected to take about a month. The recovery of demand is not as expected.

4).Future forecast.

        The prices of the upstream main raw materials for viscose staple fibers are expected to stabilize at a high level, and the supply in the market is relatively tight. However, the new round of signing orders in the downstream market has basically ended, and the peak season has arrived. There is an expectation of an increase in the operating rate of human cotton yarn factories, which will drive the consumption of viscose staple fibers. Therefore, it is expected that the demand for viscose staple fibers may increase in the later stage.