Viscose fibre price continues to rise

14 Dec '06

2 min read

According to relevant data, in 1995, Chinese fiber consumption was 4.5 kg per capita, it increased to 6.6 kg in 2002, and further rose to 7.7 kilograms in 2005. With the steady increase of per capita fiber consumption, the growth of viscose fiber in China will enter a period of big and substantial development.

Some experts predict that viscose price will continue to rise before 2009.

China produced 191,400 tons of viscose filament yarn and 988,600 tons of viscose staple fiber in 2005. Almost no new installations put into operation in 2006. Based on the average growth level of 14.38 percent (viscose filament yarn) and 13.83 percent (viscose staple fiber) in 1998-2005, China will produce 218,900 tons of viscose filament yarn and 1.1253 million tons of viscose staple fiber in 2006.

Taking into account of the newly added capacity in 2007, it is expected that the national viscose filament yarn production will reach about 253,900 tons in 2007 and viscose staple fiber production to 1.2853 million tons, the total output of all viscose fibers could amount to 1.539 million tons at most.

But in China, from January to July 2006, the apparent demand of viscose fiber was 815,200 tons, and annual viscose fiber demand is expected to be at least of 1.5 million tons, far more over 1.3442 million tons of the annual output.

To calculate against the current annual growth of 30 percent in demand, China will produce 1.95 million tons of viscose fiber in 2007, and all viscose fiber production will be of 1.539 million tons at most. So output growth will be far behind the demand growth. Therefore viscose fiber price will increase substantially in 2007. Price hike in viscose fiber products could only be curbed by newly added capacity in 2009.

Fibre2fashion, News Desk - China

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