Viscose fundamental improves, fibre filament prices under correction

Viscose or rayon fibre markets saw some improvements both in demand-supply fundamentals and prices in the last week of June. In China, availability of high-end goods shrank significantly with Sateri’s two lines idled for some time. Further, post Dragon Boat Festival, active demand in both domestic and overseas markets emerged and producers adjusted offers upwards in the week. Prices were also seen moving up in Pakistan while they rolled over in India.

In the week ended 26 June, medium-end VSF in China were traded at US$2.04-2.06 a kg, up US cent 1 on the week, while high-end VSF were at US$2.11-2.13 a kg, up US cents 2-3 from last week. In Pakistan, 1.5D VSF prices were hiked PakRs10 to PakRs220 a kg in the Karachi market or US$2.16 a kg, up US cents 10 from previous week. In India, producers’ prices were stable at INR141-148 kg or US$2.22-2.33 a kg since it was hike in early May.

Viscose filament prices were stable and producers in China reportedly enjoyed healthy liquidity, and inventory at some dropped somewhat. Market prices for all class of goods rolled over previous week’s numbers. In India, prices of some specs of viscose filaments were seen dropping after prolonged period of stability.

In India, 120D bright VFY was pegged down INR3 to INR376-381 a kg, or US$5.91-5.99 a kg, down US cents 3 on the week while 450D was stable at INR 240-242 a kg or US$3.77-3.80 a kg, up US cent 1 from last week due to weak US$ against the INR. In China, 120D dull VFY offers were steady at US$6.43 a kg, while bright was at US$6.40 a kg. 300D dull was traded at US$4.42 a kg and bright at US$4.40 a kg.

Courtesy: Weekly PriceWatch Report