Weekly Report: VSF (4th Nov)
Author: Nov 04, 2011 17:02
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168tex News: Viscose staple fiber price slumped sharply. Now a low price rumor is spread on the market. Market players do not have much confidence for the price goes down continually. Buyers are not optimistic about the market. Now the mainstream is offered at 17500CNY/t. As is said, some relative low negotiate is below 17000CNY/t, dropping around 500CNY. The overall turn over is seldom and stocks in plants have notably increased.
This week, the upstream short stapled cotton market and also the cotton pulp market are relatively panic that pricing and marketing is quite difficult for the prices have sharply down regulated. Although some plants indicate to ship at a loss, but it also boosted VSF price down regulate constantly.
On the upstream market, this week, short stapled cotton price has been notably down regulated. For the cotton pulp negotiate price slumped by large, short stapled cotton acquisition price fell down. Now the pulp plants are forcing down the price at 4000CNY, and some oil plants dump the goods at a low price. Xiajin short stapled cotton is offered at 4000CNY/t, dropping by 500CNY/t, and it turned out to be a quite reasonable price, for there are already orders placed. As for cotton pulp, the trade atmosphere this week is weak. According to survey, there is no real deal made recently. Cotton pulp negotiate price is greatly down regulated, and the pulp plants are mostly run on meager profit. Now the qualified product is negotiated around 9000CNY, dropping by 1500CNY/t. On this Sunday, a cotton pulp conference will be hold in Tianjin province, which will mainly focus on the management plan of cotton pulp enterprises under the background of sharp industry slump.
On the downstream market, cotton price continue downward due to the double pressures of low harvest of new cotton and weak demand. The current market is over supplied. Now China 328 grade cotton is offered at 19293CNY, dropping by 139CNY, comparing with that of last week. As for rayon yarn, its production and consumption rate fall back, with a high amount stock that is universally around a month. Now some yarn plants have changed the line of production to some hot selling products, like plug collaterals spinning, and high count yarn. With the production and consumption rate fall back, rayon yarn plants stopped production one by one to easy the stock pressure. Among which, plants in Xiaoshan area especially stand out, with air spinning operation rate around 30%~50%. Now knitting yarn 30S price in Foshan area has down regulated to 20500CNY/t, with the mainstream negotiate price around 22000CNY, dropping by 400CNY/t or so.
To sum up, now viscose staple fiber price dropped quickly, that make the whole industry chain at a recession. Viscose yarn plants are already in the edge of loss. Now the most important thing for them is to keep the capital flow. But the downstream buyers are not optimistic about the after market. Therefore, viscose staple fiber price will slightly downward.
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Editor: Candy From: 168Tex.com
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