Viscose filament prices were sharply up in the past four weeks in China with prices of viscose staple fibers mostly unchanged at the same time. More competition from lower cotton prices may have affected demand for VSF. Inventories were also higher than a month ago. Viscose filament is in tight supply, by contrast.

Viscose prices continued slightly rising in the past four weeks in China, although less significantly than in the previous period.

Average price for 1.5D*38mm was up 100 yuan per ton or 0.78 percent, up to 13,000 yuan in the last four weeks. Prices of viscose staple fibers are now ranging between 12,800 and 13,200 yuan depending on markets and origins (see our table below).

Weaker demand
Average price of Indonesian origins did not change, however.

In US$ terms, prices were up 4 cents per kilo or 2.35 percent, reflecting a rise in the yuan against the US dollar.

Demand was less strong than in the previous period, after inventories were accumulated.

Prices of cotton fibers further declined over the period with a narrowing gap between cotton and viscose prices, as a consequence.

After peaking at 1,770 yuan per ton by early February, the difference today fell to 1,100 yuan, following a rise in VSF prices while cotton prices were declining.

There was no change in the past four weeks between viscose and polyester prices, since PSF prices were also up in the meantime.

Filament in tight supply
In sharp contrast with the stability in VSF prices, viscose filament prices significantly rose over the period.

Average price for VFY jumped from 26,800 yuan per ton up to 28,600 yuan, reflecting a lack of supply on the Chinese market.