Viscose prices upward march halt weakens yarn market
The buoyancy in viscose staple fibre (VSF) markets appear fading in the last week of June as upward strength gradually tempered off in China. However, offers stabilized weakly and sale/production ratios cooled down following the booming straight seven weeks run. Besides, the restart of some idled units in China dampened market confidence, and in turn buying appetite declined. However, low inventory supported VSF market to hold ground, although some traders actively offloaded goods to book profits. In spot, 1.5D VSF offers were at 14.83 Yuan a kg (US$2.24 a kg) and 1.2D to 15.20 Yuan a kg (US$2.30 a kg), both down US cents 5.
In Pakistan, producers’ offer remained unchanged over the week amid stagnant demand. Overall, next week may see some downward adjustment in prices on increased supply in China. Offers for 1.5D VSF were unchanged at PakRs250-253 a kg (US$2.05-2.08 a kg) in Karachi.
Viscose spun yarn markets were stable to weak across Asia and prices were seen moderating in China in the week ended 29 June. Some fabric makers who had suspended production during the Dragon Boat Festival last week, showed limited buying interest after resuming production. Offers in Jiangsu for 30s ring‐spun viscose yarn were cut to 19.75 Yuan a kg (US$2.98 a kg), while 40s yarn offers were cut to 20.85 Yuan a kg (US$3.15 a kg, up US cents 2), both down US cents 7, also due to weak Yuan. 50s yarn prices rolled over at 22.20 Yuan a kg (US$3.36 a kg, down US cents 7).
In Pakistan and India, viscose yarn prices remained stable as weak currencies pegged values significantly down in US$ terms. In India, 30s viscose spun knitting yarn prices remained unchanged in Ludhiana at INR183 a kg (US$2.67 a kg, down US cents 3 due to weak INR). In Pakistan, viscose yarn prices were flat with 35s at PakRs146 per pound (US$2.64 a kg) and 40s at PakRs160 per pound (US$2.90 a kg). However, overall demand is hard to improve going ahead.
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