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Viscose staple fibre prices turn around smartly
Jan '09
Due to poor demand from lower reaches, there was a state of over supply of the golden fibre in the markets, with prices also falling from a peak of 21,500 Yuan per ton at the beginning of the year to 11,600 Yuan per ton by the end of the year, leading to mass shutdowns among the Viscose fibre manufacturers.

In January 2009, sales of the fibre are displaying signs of a turnaround with orders from downstream industries slowly picking up. The inventory level of Viscose fibre manufacturing companies fell to about 9 days from 28 days in November. Prices of 1.5D viscose staple fibre which were ruling at Yuan 11,450 per ton in late December rebounded to Yuan 11,550 per ton by mid-January.

In 2008, Viscose fibre prices had dropped by half from its peak of 2007 and fallen to levels quoted in 2003, with its spread against cotton prices also dropping to less than 1000 Yuan. With prices falling to 2003 levels, a renewed buying trend was observed in the markets, due to the upcoming spring festival.

Since January 2009, viscose filament prices also have stabilized at around Yuan 28,500 per ton, with sales also perking up, as operation rates of filament manufacturers grew and downstream manufacturers started maintaining small but significant inventory levels.

Fibre2fashion News Desk - China

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