Spun Rayon Yarns Market Fell into Deadlock

    Approaching the end of the month, the spun rayon yarns market was overall tepid, and prices were still falling. Although the traditional textile peak season just passed by, the spun rayon yarns market was not improved. Since entering October, the price was in stalemate more and more. With the drop of viscose staple fiber prices, spun rayon yarns prices showed more cost drove trend and dropped continuously, in addition to the low demand of upstream and downstream market, spun rayon yarns market fell into a bad environment.

    First of all, let’s review the present spun rayon yarns market condition. At percent, the woven 30s price was 18,200-18,300 Yuan/ton in Xiaoshan and Shaoxing, the price was 18,200 Yuan/ton in Jiangsu and Zhejiang, 36s price was 18,600 Yuan/ton, sirospun 30s quotation was 21,000-22,500 Yuan/ton, sirospun 30s price was 20,000 Yuan/ton in Fujian, and 40s price was 22,000-23,500 Yuan/ton. Because of poor market expectations, a part of factories in Shandong cancelled offering and took the strategy of pricing along with the purchasing, the prices declined to some extent compared to the price in previous time, and yarns factories stock showed rising trend. Thus, the confidence of spun rayon yarns market was weak, and the enthusiasm of factories was general.

    In terms of raw material market, VSF market was not optimistic generally. In previous time, factories kept bearish attitude and introduced settling accounts per month policy, which made VSF middle-end products quotation maintained at 14,200-14,300 Yuan/Ton, and high-end products maintained at 14,500-14,600 Yuan/Ton, which declined 8.81% compared to the price at the beginning of September. At present, the selling intention of viscose staple fiber market was strong, but the drove power of viscose staple fiber was insufficient, in addition to the downstream procurement mainly based on demand, the market demand was more difficult to boost greatly, the price may enter 14,000 Yuan/ton. The drop of viscose staple fiber prices will seriously impact the spun rayon yarns market.

    In terms of production, the yarns factories were suppressed by the cost, along with the increase of viscose staple fiber prices at the end of August, the spun rayon yarns market gradually got rid of cost trouble. But the downstream grey cloth market in peak textile season showed a "peak season not prosperous" situation, the market condition was weak. In addition, the current spun rayon yarns market was still in loss situation, market fluctuation range was limited. With the digestion of long-term goods by the market, and the cost of suppliers increased slightly, yarns factories insisted on the price. Approaching the end of the month, the sales condition of yarns factories did not be improved, the operating rate was not high generally. So at the end of the month, the spun rayon yarns market fluctuation will be very limited.

    In terms of demand, the current grey cloth market inquiry atmosphere was sluggish, downstream demand was insufficient, selling condition was not good, and the preferential measures were introduced. Influenced by cost pressure and demand a lower price by customs, the profits of factories were very limited. Especially the sales condition of conventional varieties in the market was not good, and the stock remained high. In perspective of recent Textile City spun rayon yarns trend chart, since entering October, the market sales condition was still wandering at the bottom, and market trading atmosphere was difficult to be boosted.

    Generally, at present, the spun rayon yarns market was still pessimistic, in addition to the VSF industry chain related products were mainly in loss, the market was difficult to recover in the short term, and the overall trading atmosphere of spun rayon yarns became more cautious, trade speed was difficult to be quick. It is estimated that along with the operating rate of downstream weaving factories dropping slightly, the purchasing enthusiasm of spun rayon yarns will be cracked down and the market was difficult to be improved substantially. It estimated that the market will mainly be weak in the future.