Viscose Staple Fiber Market In The First Half Of 2019: Price Refresh Low Negative Profit Level In The End

In the 1-6 months of 2019, fleeting, in the short half a year, viscose staple fiber created the "two most" of the three major raw materials of cotton spinning, the price before the other fiber refresh the historical low; second, the negative profit state is the most fiber.

Viscose staple first refreshed historical lows

In 2019 1-6, the average price of viscose staple fiber was 12532 yuan / ton, down 13.94% from the same period last year. The average price of polyester staple fiber was 8436, down 4.97% from the same period last year, and the average price of cotton was 15233 yuan / ton, down 5.51% from the same period.

Looking back at the trend of major chemical fibers over the past years, viscose staple began to rebound first after hitting lows in early 2015, and both PET staple and cotton rebounded in early 2016. Viscose staple fibers began to decline after experiencing 2 years of rise and 1.5 years of consolidation. Now it has experienced 1 years of decline and renewed its lowest level in mid June 2019.

Polyester staple has bottomed out in early 2016, during the 7-8 months of 2018 and the rapid rise of 2019 June, but the rapid rise of cost driven costs also ran back to reason because of the fall in costs.

Cotton consumption in cotton spinning industry ranks first among polyester staple fiber and viscose staple fiber, but cotton as an agricultural product is related to people's livelihood. After a surge in 2010, a series of control policies have been running, and the trend has been relatively mild in recent years.

Viscose staple creates the most negative profits.

In 2019 1-6, viscose staple fiber cash flow -873 yuan / ton, a year-on-year decline of 315.22%; polyester staple cash flow 351 yuan / ton, down 5.61% compared to the same period.

If we calculate the profitability of viscose staple fiber in line with the cost of the day, the price of viscose staple will fluctuate in general. Its price will reach a new low in mid June 2019 and the negative profit level will also reach the bottom. Since the price of PET staple has bottomed out in early 2016, the level of profitability has been relatively good.


The profit of the viscose staple fiber industry dropped sharply, and the load of the industry started to drop to a historical low level. In 2019 1-6, the average load of the viscose staple fiber industry was 77.37%, down 1.71 percentage points compared with the same period last year. In 2019 1-6, the total output of viscose staple fiber was 1 million 940 thousand tons, but it increased 240 thousand tons compared with the same period last year.


The decline in start-up rate also resulted in a year-on-year increase in output, mainly due to the upgrading of viscose staple fiber production base. Since the second half of 2018, viscose staple fiber production capacity has increased significantly. In early 2019, 2 total 160 thousand tons / year production lines in Funing were put into trial operation, and the actual production capacity in Suqian gradually increased to 250 thousand tons / year. At present, the total production capacity of viscose staple fiber industry increased to 5 million 20 thousand tons.



The viscose staple fiber industry is closing down the profit of the industry due to the increase in supply. According to the statistics, in 2019 1-6, the R30S (ring spinning) disc processing fee increased by 13.22% over the same period last year. R40S (Siro) disk processing fee basically maintained at 7000 yuan / ton above the location of operation, R30S (Wo Liu) in 4300 yuan / ton above the position of operation.

Viscose staple mainly increased the profit of cotton yarn at the same time, and also significantly outperformed viscose staple fiber in export. (see Table 5), according to customs statistics, in 2019 1-5, the export of cotton yarn increased by 15.56% compared with the same period last year, and the export of viscose staple fiber increased by 7.23% compared to the same period last year, and the export volume of cotton fabric increased by 9.22% compared with the same period last year.


The situation of yarn and cloth in viscose staple fiber may or will continue until the end of 2019. The main reason for judging is still the high viscose staple fiber's own capacity. Since the supply side reform in 2015, the strict entry threshold has restricted the development of smaller upstream and scattered enterprises. The chemical fiber tap effect is more obvious, and the industry has bottomed out and profits. However, when the industry is rising rapidly and unable to synchronize with the global economy, more and more enterprises in the middle and lower reaches are unable to synchronize with the cost, resulting in the compression of the capacity and the shrinking of the industry capacity. Therefore, since the beginning of 2018, the upstream phenomenon has begun to become more obvious.