Viscose staple fiber: fierce market competition in price and demand

Recently, viscose staple fiber enterprises have once again made profit-making orders. The mid-end price broke through the price of 10,500 CNY/ton (acceptance) in the year, and the price was lowered. The average profit of the company's real trading was about -1339 CNY/ton in January-October 2019, the lowest profit level in the past five years. Not only that, the gap in productivity between enterprises is wide, the pace of trade is mixed, and the price and demand competition tends to become hot.

In 2018, China’s viscose staple fiber industry has accumulated a total of nearly one million tons of technological transformation capacity, which has intensified the contradiction between supply and demand in the market. In 2019, the operation of enterprises was relatively passive. The overall price decline during the year was a foregone conclusion.

In 2011, the cumulative capacity of China’s viscose staple fiber industry was about 740,000 tons. The market price in 2011-2014 was under pressure. During the period, the price low appeared in May 2014, about 11,850 CNY/ton (acceptance), estimated in 2019. The industry’s production capacity is about 4.74 million tons, which is about 1.25 million tons more than the increase in 2014. According to the current price of 10,200 CNY/ton (acceptance), it has dropped by 1,650 CNY/ton from the low price in 2014.