Viscose yarn: sharp decline in November, expected to narrow in December

Dec 19, 2019  |  by CT
Since the viscose yarn industry entered November, on the one hand, it has been subject to financial pressure, on the other hand, it has come from various issues such as weak costs and its own inventory pressure. Most varieties have begun to reduce prices, and the decline has far exceeded that of raw materials, it also caused the compression of its own processing costs.
As early as mid-to-late October, vortex spinning viscose yarns have begun to show signs of price reduction. Since November, the vortex spun r40s led the decline, and ring spinning, Siro spinning, air spinning and Siro compact viscose yarn all showed significant decline. In November, the viscose staple fiber accumulated a drop of 450 yuan / ton in the month. Regardless of the fact that the spinning company still holds a certain high price, even if calculated at the cost of the day, most varieties of viscose yarns have fallen far more than the viscose staple fiber and the processing cost is obviously reduced.

From the perspective of the processing cost of mainstream viscose yarns throughout the year, the processing fees of Siro and Siro compact spinning have been significantly reduced since August. Therefore, since September, Fujian, Jiangxi and other places have obviously experienced partial production adjustment and conversion, to a certain extent, drives the start-up rate of the viscose yarn industry to decline. In addition, there have been spinning companies in the mainland to reduce production, and the average start-up rate of viscose yarns has gradually declined during the year.

However, with the recent stabilization of the price of viscose staple fiber and the partial repayment of viscose yarn, yarn companies have successively eased some funds and inventory pressure through promotions. In addition, although the market expects that viscose staple fiber may still choose to sell at a discounted price in December, it is expected that it will continue to narrow down the space, not to mention that the low price of some viscose yarns has fallen excessively, even though the viscose yarns continued to make a large discount in December, but it may also be of little significance due to the gradual closing of weaving and the limited trading volume. Therefore, it is expected that the decline in viscose yarns in December will continue or moderately slow.



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