The price of 30-count viscose knitting yarn on the market has dropped in the past few days, and many traders have begun to wonder whether the price of upstream viscose fiber will be dragged down by the price of viscose yarn. Therefore, some spinning mills are once again waiting and hesitating to purchase raw materials. We believe that from a general perspective, the phenomenon of “man-made cotton is more expensive than natural cotton” will be the new normal for a long time. Fiber consumption in the downstream market has undergone structural changes. The current decline in yarn prices is a sign of market strength. The consolidation is a normal market “profit-taking”. We do not need to be overly bearish on the future trend of viscose fiber.
Viscose staple fiber is currently affected by increased consumption and reduced supply (environmental protection and factory closures and production restrictions or suspensions), and prices can still be supported in the short term. The orders and exports of viscose staple fiber factories this year are in good condition. The price of cotton and medium-length viscose staple fiber fluctuates around the range of 17,300 yuan/ton ±200 yuan. Judging from the return of foreign trade orders, the textile trade situation in the first quarter of 2017 was quite satisfactory. International trade data was still good, factory operating rates remained at a high level, the return of orders and the export of viscose yarn ( Southeast Asia) is also in good shape.
Regarding future prospects, if the relevant peripheral markets (cotton, polyester) do not experience a cliff-like plunge, the price of viscose staple fiber will remain at the current central level of 17,300, and a range of up to 200 yuan is acceptable. Spinning mills can buy whatever they need according to the order situation, so the risk is not very high. Traders control the quantity of inventory and do not operate with full warehouses. They should be able to “unwind” soon.
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