Chaotic rayon yarn market

As the macro environment continued to be turbulent, negative-feedback in commodity market has also been given out. For example, front-month contracts of PSF and cotton showed a large fall. Cotton price has fallen dropped below pre-holiday price, while PSF one was in range-bound at the level before CNY. Obviously, the bull market has faded.
Although viscose has strong fundamentals, it was not immune.

VSF plants maintained offers at 15,600-16,000yuan/mt, but traders’ sources were much cheaper than that of plants. Some yarn mills who intended to replenish feedstock despite large price spread started to balance the profit and loss----whether to give up the cooperation with some VSF plants temporarily. Although the viscose market was chaotic, it was controllable. In recent years, the concentration of viscose has gradually increased, and the plants had the flow of goods control capability.
     As to rayon yarn, as there were many spinners and traders, whose feedstock cost, pre-sales and inventory of each spinner were different, especially in the big fluctuation, rayon yarn got more chaotic. Vortex-spun rayon yarn was a typical representative. Vortex-spun R30S was offered at 20,000yuan/mt and the traded priced lower 1,000, 2,000 or 3,000yuan/mt were timely rumored which further hit the market trading enthusiasm.

If there is no significant change in the external environment, the chaos of rayon yarn market is expected to last for 2-3 weeks. After that, it will also enter the dull season, and prices of viscose and yarn will be tolerable and stable.

As the macro environment continued to be turbulent, negative-feedback in commodity market has also been given out. For example, front-month contracts of PSF and cotton showed a large fall. Cotton price has fallen dropped below pre-holiday price, while PSF one was in range-bound at the level before CNY. Obviously, the bull market has faded.

Although viscose has strong fundamentals, it was not immune.

VSF plants maintained offers at 15,600-16,000yuan/mt, but traders’ sources were much cheaper than that of plants. Some yarn mills who intended to replenish feedstock despite large price spread started to balance the profit and loss----whether to give up the cooperation with some VSF plants temporarily. Although the viscose market was chaotic, it was controllable. In recent years, the concentration of viscose has gradually increased, and the plants had the flow of goods control capability.
        As to rayon yarn, as there were many spinners and traders, whose feedstock cost, pre-sales and inventory of each spinner were different, especially in the big fluctuation, rayon yarn got more chaotic. Vortex-spun rayon yarn was a typical representative. Vortex-spun R30S was offered at 20,000yuan/mt and the traded priced lower 1,000, 2,000 or 3,000yuan/mt were timely rumored which further hit the market trading enthusiasm.

If there is no significant change in the external environment, the chaos of rayon yarn market is expected to last for 2-3 weeks. After that, it will also enter the dull season, and prices of viscose and yarn will be tolerable and stable.