As of January 13, 2021, the benchmark price of viscose staple fiber is 12,780 yuan/ton for acceptance, an increase of up to 1,000 yuan from last Friday. The actual trading volume of new orders of viscose staple fiber has slowed down after New Year’s Day, but the increase in viscose staple fiber has continued unabated. The specific reason is that the factory controls the signing of orders.
Since the last week of December, most viscose staple fiber manufacturers have placed their orders into mid-February or even the end of February. After the New Year’s Day Although the follow-up of new orders in the market has slowed down, there are still companies that continue to fill orders, and the current overall cash flow of viscose staple fiber is relatively considerable. However, if viscose staple fiber manufacturers are willing, they can completely increase the number of orders in March or even after. The output is pre-sold in advance, but the factory continues to limit signings. In order to control signings, the most effective way is to raise prices.
Since the current cash flow of viscose staple fiber is good and orders are abundant, why not increase production to ease supply pressure? On the contrary, the current operating rate has even declined slightly, and even during the Spring Festival and even subsequent periods, viscose staple fiber production has declined slightly. The overall operating rate of viscose staple fiber is still likely to decline. This is the main reason for the price increase of viscose staple fiber due to the limited signing—the overall production volume in March cannot be guaranteed.
Currently, the dissolving pulp held by most domestic viscose staple fiber manufacturers can only guarantee their own production for 2 months. The purchasing volume and price of dissolving pulp in March is expected to be clear in late January. However, currently Most of the viscose staple fiber has pre-sold the February volume in advance, and will start pre-selling the March output later. However, in March, when the output cannot be guaranteed, the signing of orders can only be restricted at present, so the recent price of viscose staple fiber may Continue to rise.
It may be clear around January 25th whether the raw materials for viscose staple fiber will be purchased or the supply pre-sale will start next month. However, it is estimated that the amount of raw materials purchased will be small and the price will be high, so during February The price of viscose staple fiber remains strong. Even though downstream startups declined during the Spring Festival, the overall accumulation of viscose staple fiber is expected to be limited, which will continue to support the overall price in the first quarter.
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