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Steady decline in VSF prices create market furor
Mar '08
Fulida Group in Zhejiang notified to its customers recently that the price of viscose staple fibre (1.5 D * 38mm) would drop by 500 yuan per ton from the earlier basis.

The current price floated by the company is already down from the original 21,000 yuan per ton to 20,500 yuan per ton. A further concession of about 400 yuan per ton is likely to be declared for cash settlement.

This move is bound to have a disastrous effect on the VSF market which is already in a sluggish state.

A price cut of 500 yuan per ton by Fulida Group may have a 'wave effect' on the market leading to a recession of prices in other sectors as well.

Offers made by cotton pulp manufacturers for March, see prices nearing 12,000 yuan per ton, down 200 yuan per ton from February after the Spring Festival.

However, the prices were actually down by 1000 yuan per ton before the Spring Festival. Even at the current level, pulp factories have difficulties in making shipment since VSF manufacturers put up very few orders at this time.

Fibre2fashion News Desk - China

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