Viscose Yarn Price Declines In July

According to the price monitoring of the business agency, as of July 10, the average ex factory price of 1.2D * 38mm viscose staple fiber in China was 9414 yuan / ton, down 43 yuan / ton or 0.45% compared with the beginning of July, and a year-on-year decrease of 21.30%. Down stream cotton, viscose yarn prices, low demand.

Last week, cotton mills are still operating at a loss due to insufficient cotton production. In most regions, the quotation is relatively stable, but due to the Limited procurement of downstream chemical fiber plants and refined cotton plants, in order to digest the inventory funds, the transaction price has dropped. On the other hand, it is a long time before the new short staple is put on the market. The supply and demand situation and high cost support start a seesaw war. It is expected that the short-term cotton linter will tend to stabilize and shake.

On July 10, the commodity price index of viscose staple fiber and man-made cotton yarn was 95.99, which was the same as yesterday, decreased by 4.37% from the highest point of 100.38 points (July 21, 2019), and increased by 13.02% from the lowest point of 84.93 on January 05, 2020. (Note: cycle refers to the period from January 1, 2019 to the present)

It can be seen from the figure that the decline of viscose staple fiber and man cotton yarn in July was larger than that in the same period in June, and the frequency of viscose price adjustment increased. In the case of cotton linter is relatively strong, although most of the viscose quotations are not adjusted, but the manufacturers revealed that the actual transaction price is falling, and the decline of viscose may be expanded. As of July 10, the average ex factory price of 30s cotton yarn in Shandong was 13800 yuan / ton, down 67 yuan / ton or 0.48% compared with the price at the beginning of July, with a year-on-year decrease of 20.92%. No one is expected to stick to the raw material position.

Business analysts believe that the seesaw battle between the cost side and the demand side of viscose is still going on, and the latter may occupy an advantage. The actual transaction is in compromise, and the price is lowered secretly. It is expected that viscose will continue to be weak.