As of May 30th, the average market price of viscose staple fiber was RMB 13360/ton, a decrease of RMB 120/ton from the previous month, with a monthly decline of 0.89%.

In early May, the main raw material dissolution slurry market experienced a significant decline, while the auxiliary material liquid alkali and sulfuric acid markets experienced a stepwise decline, resulting in weakened cost support; In addition, due to weak terminal demand, some downstream cotton yarn manufacturers have reduced production or stopped production for holidays, resulting in a decrease in demand for adhesive short fibers. Under the dual negative factors, various adhesive short fiber manufacturers have lowered their transaction prices in a new round, but downstream manufacturers have limited new orders and are holding onto their essential procurement needs. Since mid-month, the prices of auxiliary materials in the market have continued to rise. With the easing of tariffs between China and the United States, only a few downstream factories have shown improvement in their enthusiasm for picking up goods, but there has been no substantial boost to the market. Industry players have mainly executed a new round of orders, and the prices of viscose staple fiber in the market have remained stable.

In terms of cost, the market price of the main raw material dissolving slurry has significantly declined, while the market prices of auxiliary liquid alkali and sulfuric acid have risen narrowly. The cost trend is not good, and the average production cost of viscose staple fiber has significantly decreased.

Supply and demand: The operating rate of the viscose staple fiber industry in May was around 80.28%, and the market supply increased compared to the previous month. During the month, the operating load of some viscose staple fiber devices in Shandong region increased, while some viscose staple fiber devices in Xinjiang region were shut down for maintenance in the latter half of the month, resulting in a narrow increase in overall market supply.

The operating rate of downstream cotton yarn market facilities has not fluctuated significantly, and the pre shutdown facilities have not yet been restarted. Entering May, the downstream cotton yarn market is waiting for the new round of prices for viscose staple fibers to be released, and is in urgent need of signing orders. Although the mid-month US China tariff policies have brought some positive news to the market, the recovery of demand in the end market is slow, and downstream yarn companies still mainly consume raw material inventory, with weak purchasing intentions. The new round of signing orders is not ideal, and the demand side is dragging down the market trend. The overall inventory in the market is still showing an increasing trend.

Future forecast

On the raw material side: Although there is an expected increase in the supply of viscose staple fiber, the weak demand in the end market makes it difficult to significantly improve the demand for dissolving pulp. Therefore, it is expected that the dissolving pulp market will operate weakly and steadily next month.

Supply and demand side: Some viscose staple fiber manufacturers in Shandong Province plan to resume full load operation next month, and there may be an increase in industry supply. Therefore, it is expected that the supply side of the viscose staple fiber market will continue to show loose performance next month; June belongs to the traditional off-season for demand, and it is difficult for the end market demand to improve. Downstream factories may maintain their demand for essential orders, so it is expected that the demand side support for theviscose staple fiber market will be poor next month.

Overall, the upstream main raw material dissolution slurry market may remain weak and stagnant, with expectations of an increase in industry supply. Downstream yarn factories may purchase on demand, and industry players lack confidence in the future market.