Last week (June 3-9), the focus of the adhesive short fiber market was relatively warm, and manufacturers introduced a new round of prices, resulting in a slight increase in prices. Some large factories have seen an increase of 100-150 yuan/ton, and some are reluctant to sell at low prices due to restrictions on signing orders. Overall, the number of orders signed this week is relatively good, and after the end, they will once again enter the stage of manufacturers executing orders and shipping. The quotation for the mid to high end market is around 13200-13400 yuan/ton, and the negotiated price is around 13000-13300 yuan/ton. The trend of raw material dissolution slurry is strong and stable, with cost support still remaining. The maintenance of the adhesive short fiber device is still ongoing, and there is currently no significant pressure on the overall inventory of manufacturers. Some enterprises are experiencing tight shipments, and the supply of adhesive short fiber industry is still tight.

According to the commodity market analysis system of Shengyishe, the price of viscose staple fiber slightly increased last week (June 3-9). As of June 9th, the domestic factory quotation for 1.2D * 38mm adhesive short fiber is 13240 yuan/ton, an increase of 20 yuan/ton from the beginning of the week’s price of 13220 yuan/ton, with a weekly increase of 0.15%.

In terms of supply: Last week (June 3-9), the operating rate of the adhesive short fiber industry declined, and some manufacturers are still undergoing equipment maintenance. The overall market supply has slightly decreased. The inventory of various manufacturers is still at a low level, and some factories have tight shipments. There is currently no inventory pressure, and there is some positive support on the supply side.

In terms of cost: The market price of raw material dissolution slurry is strong and stable, providing support for the market. The market prices of auxiliary material liquid alkali and sulfuric acid are stable, and the cost center remains stable. Last week (June 3-9), the domestic price for dissolved pulp was around 7700-7800 yuan/ton. The price of imported broadleaf dissolved pulp is around 940 US dollars per ton, and the price of needle leaf dissolved pulp is around 1000-1030 US dollars per ton.

In terms of demand: Last week (June 3-9), downstream people mainly executed orders in the cotton yarn market, with little price change. There is not a high willingness for inventory of raw material viscose short fibers, and there is no obvious improvement in demand. Downstream yarn factories mainly consume inventory, and the release of new orders on site is limited.

Downstream cotton yarn market

Last week (June 3-9), downstream cotton yarn was weakly consolidated, with the market mainly executing orders, overall prices weak and stable, overall shipments average, inventory basically maintained, and demand side performance was weak. Downstream demand has not improved significantly, and actual transactions on the market are limited. As of June 9th, the average ex factory price of human cotton yarn (30S, ring spun, first grade) was 17225 yuan/ton, which is the same as the price at the beginning of the week.

Future Market Forecast

The upstream raw material market prices are strong and stable, with low inventory from various manufacturers and tight shipments from some factories, which provides support for the market. Downstream enterprises have average purchasing power, and the industry is currently entering a low season. Downstream cotton yarn may not have a good recovery, and the overall market sales speed is weak or continues to be stable. It is expected that the short-term market for viscose staple fibers will have a high probability of stabilizing prices, and the market will remain stable. The market for human cotton yarn will mainly operate weakly and steadily, and the price of viscose staple fibers is expected to be in the range of 13100 to 13300 yuan/ton.