High Inventory Backlog, Viscose Staple Fiber Will Also Fall.

According to the price data of business associations, the average price of domestic 1.2D viscose staple fibers was 11450 yuan / ton by June 20th, down 7.91%, or 983 yuan / ton, down 25.65%, or 3950 yuan / ton. The price is basically flat compared with last week, and the price range of large factories is around 11200-11600 yuan / ton. Viscose factory intends to be very price, the overall price stability temporarily, local small rise, downstream bottom bottom mood is ready to stir up, inquiry atmosphere rise, the big single began to negotiate, the atmosphere is warmer.

The upstream cotton lint price is generally stable. Due to environmental inspection, the downstream operation rate is low, and the price of imported cotton lint is low. Therefore, manufacturers will not be biased towards domestic high price short staple, making the market spanaction limited. The acquisition and processing of domestic cotton by-products will soon come to a conclusion, and the supply of cotton by-products has been significantly reduced. Due to the Sino US trade, China has reduced the purchase of beans, reduced the supply pressure in the domestic market, and helped stabilize the overall price of cotton pairs. Therefore, the cotton lint price will not fluctuate much.

The average price of the downstream 30S cotton yarn in Shandong area was 17625 yuan / ton, down 4.08%, or 750 yuan / ton, down 14.62%, or 3017 yuan / ton. Due to the Sino US trade relationship, entering the June, the Sino US trade war's impact on the textile industry is gradually increasing, especially in small and medium-sized textile mills. At present, most of the weaving factories have very few orders, and the maintenance and production restriction are the only thing they can do at present. Small and medium-sized textile mills generally produce a variety of products, and the situation of the weak environment is more difficult and the inventory is high. Even if prices are reduced, they can not solve sales problems.

To sum up, business analysts believe that there are two points in deciding the price of viscose, one is the trend of Sino US trade and macroeconomy. Although it is difficult to predict the outcome of negotiations on trade disputes during the G20 summit, the US decision to delay tariffs on China's US $300 billion is expected to be postponed. A few days ago, the Sino US leaders' call released positive signals to push the domestic market, but the concrete results still need further waiting. On the other hand, the downstream textile enterprises have high inventory and the pressure of production and marketing. Since the trade friction, almost all enterprises have been faced with the risk of capital chain; the downstream cloth mill is not actively stocking. In order to reduce the risk of inventory backlog, production and sales sluggish lead to a continuous depreciation of inventory. By adding tariffs to suppress domestic manufacturers' confidence and oversupply, many foreign markets have taken the opportunity to lower prices. The combination of multiple factors makes inventory pressure high and prices easy to fall. Above, the viscose staple fiber prices are expected to continue to fall.