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Viscose staple fiber prices expected to zoom in stratosphere
26 Aug '09
2 min read
Prices of viscose staple fiber (VSF) have been rising continuously since mid-July from 15,500 Yuan per ton to the current 16,900 Yuan per ton. Analysts believe that the price is at its highest point of this year and with consumer season approaching fast in September and October; VSF price is expected to increase further.
July and August are traditional off-season for textiles, but viscose prices witnessed a high level in the off-season, too. In addition to viscose staple fiber, other synthetic fibers also received fair demand in off-season, although they suffered narrow declines.
Analysts believe that downstream textile industry of chemical fibers has not warmed up significantly, but chemical fibers can substitute cotton and rising cotton prices directly results in higher price of viscose staple fiber, therefore downstream demand for viscose starts up in advance.
Cotton price has shown a rising trend since June when it stood at 120,000 Yuan per ton and had reached the highest level of 134,000 Yuan per ton. Current price stands at 13,000 Yuan per ton.
Chinese Ministry of Agriculture and China Cotton Association have predicted that cotton acreage in 2009 will drop by around 13 percent or so. The US Department of Agriculture also projected on June 30 that cotton acreage in 2009 will fall by 4 percent.
Industry sources point out that although the overall scenario of textile and garment industry has not improved, product prices and export volumes have gradually increased and are in a recovery process.
Raw material costs fell in the first half, leading to a decline in cost pressures of textile production. But they are once again expected to slowly move northwards and viscose staple fiber is expected to increase to 18,000 Yuan per ton in the second half of this year.
July and August are traditional off-season for textiles, but viscose prices witnessed a high level in the off-season, too. In addition to viscose staple fiber, other synthetic fibers also received fair demand in off-season, although they suffered narrow declines.
Analysts believe that downstream textile industry of chemical fibers has not warmed up significantly, but chemical fibers can substitute cotton and rising cotton prices directly results in higher price of viscose staple fiber, therefore downstream demand for viscose starts up in advance.
Cotton price has shown a rising trend since June when it stood at 120,000 Yuan per ton and had reached the highest level of 134,000 Yuan per ton. Current price stands at 13,000 Yuan per ton.
Chinese Ministry of Agriculture and China Cotton Association have predicted that cotton acreage in 2009 will drop by around 13 percent or so. The US Department of Agriculture also projected on June 30 that cotton acreage in 2009 will fall by 4 percent.
Industry sources point out that although the overall scenario of textile and garment industry has not improved, product prices and export volumes have gradually increased and are in a recovery process.
Raw material costs fell in the first half, leading to a decline in cost pressures of textile production. But they are once again expected to slowly move northwards and viscose staple fiber is expected to increase to 18,000 Yuan per ton in the second half of this year.
Fibre2fashion News Desk - China
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