The tenth day of the Lunar New Year has passed and textile factories in many areas have resumed production. Compared with 2016, more companies have resumed work this year than in previous years. Among them, the earlier rayon yarn mills in Fujian started operations as early as the fourth and fifth day of the Lunar New Year, and most of the yarn mills resumed production from the eighth to the tenth day of the Lunar New Year. According to the person in charge of a factory in Xiaoshao area, the factory is currently open but is short of workers. This is a relatively normal phenomenon. It is estimated that it will take until after the fifteenth day of the first lunar month to resume full production.
Although the rayon yarn market is still recovering, the viscose staple fiber market still has a “good start” on the first working day after the Spring Festival.
We had a good start on the first day, with an increase of 200-300 yuan/ton!
On the first working day after the Spring Festival, the viscose staple fiber market got off to a good start. Tangshan Sanyou first raised its quotation to 17,300 yuan/ton, and Aoyang and other manufacturers also followed suit slightly. Although this year’s good start is not as big as that of products such as polyester filament and nylon, which increase by 100-200 yuan per day, as of the tenth day of the first lunar month, the price increase was between 200-300 yuan/ton.
At present, the quotations of high-end manufacturers in the viscose staple fiber market have risen to 17,300 yuan/ton. The actual transaction focus is 17,100-17,200 yuan/ton. The quotations of mid-range products are quite different. The higher quotations such as Aoyang Technology and Shandong Yamei are at 17,200 yuan/ton. -17,300 yuan/ton, with some lower prices still staying at 16,800 yuan/ton.
Manufacturers have slowed down their price adjustments, but price increases are the general trend!
Although the market got off to a good start on the first day, manufacturers’ quotations were mostly stable in the next two days. Judging from the current market transactions, although new orders are not obvious, and manufacturers mostly focus on executing early orders, according to market participants, the finished product inventory of large textile enterprises this year is about 15-20 days, and the inventory of small and medium-sized textile enterprises is about 15-20 days. It is around 10-12 days. Compared with the same period last year, it has dropped by about 2 days. The inventory of finished products has decreased, which is a big plus for the market demand after the Spring Festival.
“We are not in a hurry to raise prices at the moment,” said a salesperson from a sticky short product. “After all, the supply of goods in the market is tight now, and we have a lot of early orders on hand. If we rashly increase prices by a large margin, we are afraid of causing market conflict, so we will wait for downstream yarn , the cloth market is clear, we will make adjustments to prices, but price increases should be the general trend.”
It is reported that some manufacturers have tight supply after the Spring Festival. Many mainstream factories in Shandong, Anhui, Sichuan and other places have restricted production and their output is unstable. The industry operation is at a low level of 86%. Some high-end manufacturers have tight shipments and have begun to control the signing of orders.
When sticky shorts encounter stricter environmental protection, the leader continues to lead the way!
In fact, environmental protection issues are not an unfamiliar term to the viscose staple fiber industry. Last year, market prices entered a state of continuous rise, mostly due to environmental protection rectification. Since the implementation of the new “Environmental Protection Law” in 2015, the government has significantly increased the intensity of environmental protection enforcement. Local governments have introduced environmental protection policies specific to the region, and penalties for pollution have become increasingly severe. As environmental protection efforts intensify, some companies that do not meet standards are facing greater pressure to survive and have either stopped production or shut down. This has led to the industry’s passive reduction of overcapacity, increased industry concentration, optimization of supply-side reforms, and enhanced bargaining power of leading companies. Just as a persistent haze swept across the northern region last year, covering Hebei, Shandong, Shanxi, Shaanxi and other provinces, it also affected the production capacity of manufacturers such as Sanyou Chemical and Nanjing Chemical Fiber, resulting in particularly tight supply during this period. This environmental protection trend will not weaken in 2017, and there are even signs of intensifying.
Environmental protection, supply, environmental protection, supply… Viscose staple fiber in 2017 is expected to be closely entangled with these two words. Judging from the current market, viscose staple fiber manufacturers are generally in a state of shortage of goods. As the tight supply situation remains unchanged, the price increase in the viscose staple fiber industry chain is relatively obvious. At present, the market lacks a “tipping point”. Spinners can pay more attention to the recovery of the downstream market, “pinpoint” the replenishment time, and avoid the price increase peak!
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