Viscose textile prices sober seeing slow liquidity and weak prospects
Viscose textile has been witnessing some grey areas with market expansion and outlook apparently weak going ahead. In the last week of October ending 2 November, dissolving pulp prices have stubbornly remained high and have inched up further. Viscose spun yarn markets were dull given limited output and weakening fibre cost while filament yarns prices remained subdued as demand was flat to soft.
Viscose spun yarn markets continued to weaken in China as some fabric makers were forced to suspend production due to slow liquidity. Prices for Xiaoshan-origin ring-spun 30s yarn were stable while offers for siro-spun 40s yarn were slightly down. Coarser count yarns were also cheaper during the week. In Pakistan, despite the recent hike in viscose fibre cost, yarn prices remained unchanged implying stable demand. In India too, viscose yarn prices rolled over amid stable viscose fibre cost.
Viscose staple fibre (VSF) market extended the weakness in China, amid thick pessimistic prospects. Although producers intended to maintain price levels, low prices still emerged frequently, while actual transaction volumes were limited. Downstream mills generally talked down the prices, or waited for release of monthly settlement prices. In India, prices remained unchanged while they rolled over in Pakistan after a hike last week. Overall weakness in viscose market was obvious during the week, as supply was ample despite lower industrial run rate while demand was soft in current environment.
Viscose filament yarn prices were stable to down in China as trading atmosphere weakened. Downstream viscose textile mills reduced production partially seeing poor order intakes, so demand for viscose filament apparently thinned. In turn, inventory at producers piled up as operating rate remained stable at high level. In India, viscose filament prices were stable although cost rose further, but demand remained rigid. Prices may remain stable to soft, due to poor downstream fabric performance.
Raw material dissolving pulp market saw previous deals mostly coming to an end, with trading prices for hardwood pulp at US$940-950 a ton and softwood pulp at US$990 a ton. Some fresh offers are expected to emerge, with the expectation of a flat run. Filament-grade dissolving pulp prices slightly rose with offers for softwood pulp of US and Europe-origin ticking up to US$1,020-1,030 a ton.
(Source: Global Markets Weekly Review. For full report write to us at sales@textilebeacon.com)
