When The Viscose Staple Fiber Market Fell And Ended In The Past Year, When Was It The First Time?

It has been nearly a month since the start of the year. According to data monitoring, the price of viscose staple fiber was 12700 yuan / ton as of March 14th. From the chart, we can see that the price of viscose staple fiber has been falling, and the market price is chaotic. Most factories are actively shipping, and the remaining factories have followed up slightly, without obvious signs of spanaction.

Smooth running upstream

The overall turnover of cotton lint is dull, and there is still no obvious improvement after the holiday. The buyers of raw materials are mostly wait-and-see mentality. Domestic cotton lint price is mainly based on stability, and individual quotations are rising. At present, the start-up rate of cottonseed oil plant is low, and the output of short staple is also low. The cottonseed oil factory has strong desire to raise prices and boost cotton staple market, but the downstream factories are not operating well and the prices of imported short staple are low. The mainstream quotation of domestic dissolving pulp continued stable, and the downstream price pressure was obvious. But the pulp factory takes into account the cost, low willingness to ship goods, the price of dissolving pulp is stable and weak, and procurement is mainly based on rigid demand.

Continuous loss of profits

In terms of the detailed profit situation of the industry chain, the price of viscose staple fiber has been released in 2016 since the price rebounded in 2015. However, the profit of the viscose staple fiber has been negative again since it lasted for more than 1 years. At present, according to the processing fee of 7000 yuan / ton, the average loss per ton of viscose staple fiber is more than 1000 yuan.

The profit of the cotton yarn industry has narrowed down from the shock interval of viscose staple in 2018, and the overall profit has started to improve. If the cost is calculated by the day, the cash flow of R30S will increase by more than 600% in 2017 compared with that in 2017. Even though the market focus has slipped, the profitability of most cotton yarn models is still considerable.

Industry inventory accumulation

Before the Spring Festival, viscose staple fiber enterprises make profits to shift stores to relieve post holiday sales pressure, and help post holiday market. However, after the festival, the start-up of the downstream companies has been slow up. The implementation of orders for viscose staple fiber enterprises is generally slow. Most of the start-up yarn enterprises rely mainly on the raw materials for digestion. There are only a handful of viscose staple fibers in the field. Although the appearance of the short-term orders of the viscose staple fiber enterprises can be carried out until the end of February and even in early March, the pressure on real inventory, sales and capital is getting more and more obvious. According to the market, the industry inventory is more than 20 days.

To sum up, at present, the viscose staple fiber industrial chain profit situation, showing a triangular shape, the industrial chain profit level is concentrated in the downstream, and the market lacks good support for Fundamentals, and continues to decline. Later, viscose manufacturers can only gradually reduce market sentiment through continuous shipments and inventory sales. It is expected that viscose will still be bearish in the short term and is currently in the peak season of gold and silver four. In the long run, the trend will still be upward. (source: Business Association, long Zhong information)