For the Quarter Ending September 2024
North America
In Q3 2024, the North American Viscose Staple Fibre (VSF) market experienced a notable increase in prices, driven by a confluence of interrelated factors. A significant surge in downstream demand played a pivotal role in this upward trend. Consequently, this increased demand led to tighter export supplies, further contributing to a modest rise in VSF prices.
Additionally, improvements in import conditions from overseas markets supported the price momentum. The fluctuation in freight charges also had an impact, as rising transportation costs can create upward pressure on imported materials, thereby influencing domestic pricing. Within the USA, the market experienced the most pronounced price changes, reflecting an overall positive sentiment. The quarter recorded a 1.5% price increase compared to the previous quarter, indicating a strengthening market influenced by these dynamics.
Seasonality trends were evident, with a marked increase in prices between the first and second halves of the quarter, highlighting a consistently positive pricing environment. While prices showed a 9% decrease compared to the same quarter last year, the quarter-ending price of USD 2088/MT for VSF 1.2 D CFR Texas underscored a significant upward trajectory.
APAC
In Q3 2024, the Viscose Staple Fibre (VSF) market in the APAC region experienced an upward price trend, influenced by several significant factors shaping market dynamics. This quarter was characterized by robust supply-demand interactions, marked by tight supply conditions alongside moderate demand from downstream industries. Additionally, production costs played a crucial role in supporting this price increase. Notably, China exhibited the most substantial price fluctuations, driven by strong cost support and a rise in feedstock wood pulp prices. This quarter the market saw a 2 percent increase compared to the previous quarter, indicating a continued upward trajectory. The latter half of the quarter also experienced a notable price surge compared to the first half, reflecting sustained growth. In contrast, the market registered a -10% price change from the same period last year, suggesting a recovery from earlier downturns. By the end of the quarter, the price for VSF in China was reported at USD 1793/MT, underscoring a positive pricing environment.
Europe
During Q3 2024, the European market for Viscose Staple Fibre (VSF) exhibited a notable stability in pricing, reflecting a balanced supply-demand equilibrium crucial for the market. This stability can be attributed to several key factors, with consistent demand from the textile industry being paramount. As fashion trends and consumer preferences continued to evolve, the textile sector maintained a steady intake of VSF, which is essential for producing various fabrics. Coupled with this demand were steady supply dynamics; manufacturers effectively managed production levels to avoid surplus or shortages. Moreover, stable production costs, especially concerning essential raw materials like wood pulp, played a critical role in maintaining price equilibrium. The costs associated with sourcing and processing wood pulp remained consistent, allowing producers to plan and operate without significant price volatility. Effective inventory management practices further enhanced this stability, ensuring that suppliers could meet market needs without excessive stockpiling. In Germany, the market displayed the most significant fluctuations, with prices rising 15% compared to the same quarter last year and an 11% increase from the previous quarter in 2024. Despite these fluctuations, prices exhibited relative stability between the first and second halves of the quarter. This consistency indicates a well-regulated market environment. By the end of the quarter, the price for VSF in Germany reached USD 2638/MT.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American market for Viscose Staple Fiber (VSF) saw a significant decline in prices, influenced by several key factors. Reduced demand from downstream industries, particularly textiles and apparel, coupled with logistical challenges, played a major role in weakening market conditions. Persistent inflationary pressures and increasing interest rates further constrained consumer spending, prompting manufacturers and traders to adopt a cautious approach to procurement.
In the United States, which experienced the most price fluctuations, VSF prices reflected these broader trends sharply. Seasonal demand patterns and heightened competition from alternative textile materials contributed to the price decline. Year-on-year, VSF prices in Q2 2024 dropped by 12%, marking a substantial decrease from the same quarter the previous year. Additionally, compared to the preceding quarter in 2024, prices fell by 8%, indicating a continued downward trend.
The quarter concluded with Viscose Staple Fiber 1.2 D priced at USD 2003/MT CFR Texas in the USA. Overall, the pricing environment has been notably negative, characterized by a consistent decline in prices. This situation underscores a market challenged by weak demand and economic pressures, resulting in an unfavorable pricing scenario for VSF in North America.
Europe
In the second quarter of 2024, the Viscose Staple Fibre (VSF) market in Europe saw a continuous upward trend, characterized by significant price increases influenced by several key factors. The primary driver of this inflationary trend was the heightened cost of feedstock, particularly wood pulp, which experienced a substantial rise due to increased demand from the paper manufacturing sector. This surge in feedstock prices directly increased production costs for VSF manufacturers, prompting them to raise prices in order to maintain profitability. Additionally, logistical challenges and rising freight charges further compounded the situation, contributing to higher overall costs and consequently, higher VSF prices.
Germany, as a focal point within the region, observed the most significant price fluctuations during this quarter. The German market exhibited a strong positive sentiment driven by robust demand from the textile sector and a balanced supply-demand relationship. Seasonal factors also played a role, with heightened orders for sports textiles and related products coinciding with major events such as the 2024 European Football Cup, boosting market activity. The correlation between rising input costs and increased demand led to a notable 5% year-over-year price increase, while a 7% rise from the previous quarter underscored sustained momentum.
The quarter concluded with VSF prices reaching USD 2478/MT FOB Hamburg, highlighting a stable yet upward trajectory in pricing. Overall, the pricing environment in Germany for Q2 2024 was distinctly positive, driven by rising input costs, logistical challenges, and strong demand dynamics.
APAC
In the second quarter of 2024, the Viscose Staple Fibre (VSF) market in the APAC region witnessed a notable decrease in prices driven by several factors. The primary cause was subdued demand from downstream industries, particularly in home textiles and apparel, exacerbated by economic pressures and reduced consumer spending. High inventory levels were further aggravated by continuous imports from major manufacturing centers, leading to an oversupply situation that intensified price pressures. Additionally, cost reductions in critical raw materials such as sodium hydroxide lowered production expenses, enabling manufacturers to adjust their prices downwards. Furthermore, a decline in global textile exports, influenced by geopolitical tensions and reduced international demand, contributed to the overall price decline.
South Korea experienced the most significant price fluctuations within the APAC region during Q2 2024. The market trend was distinctly bearish, with prices falling by -19% compared to the same quarter last year and -13% from the preceding quarter. Seasonal effects played a minimal role as the market faced consistent downward pressure, resulting in an additional -5% decline from the first to the second half of the quarter. This continuous decrease led to a quarter-end price of USD 1805/MT for Viscose Staple Fibre 1.2 D CFR Busan. The pricing environment in South Korea for the quarter was predominantly negative, driven by weak demand and persistent oversupply, presenting a challenging landscape for VSF producers and traders.
For the Quarter Ending March 2024
North America
In Q1 2024, the Viscose Staple Fibre (VSF) market in North America exhibited a mixed price trend, characterized by fluctuations with some months witnessing increases while others saw decreases. Several factors played a role in driving these price changes.
A significant factor affecting VSF prices was the cost of imports, particularly from the German market, which surged due to the Red Sea crisis. This situation contributed to a bullish trend in prices. Furthermore, announcements of rising interest rates, wages, chemicals, and environmental costs by a leading manufacturer in Germany fueled expectations of further price hikes. Despite moderate demand from downstream industries, high freight charges exerted additional upward pressure on prices. Moreover, reduced demand from downstream industries in Europe resulted in a bearish off-take of VSF from apparel and textile sectors. Throughout the period, supply remained steady, enabling manufacturers to maintain full-fledged operations.
Overall, the pricing environment for VSF in the North America region during Q1 2024 was characterized by volatility. Price fluctuations were influenced by factors such as import costs, supply-demand dynamics, and downstream industry demand. In conclusion, prices experienced a decrease of more than 3% compared to the previous quarter and a decline of more than 5% compared to the same quarter of the previous year.
APAC
The pricing landscape for Viscose Staple Fibre (VSF) in the APAC region during Q1 2024 has exhibited a mixed sentiment, with fluctuations evident in certain months. Various factors have influenced market prices overall. In South Korea, the market witnessed a significant price reduction of more than 3% in the first month of the quarter. This decrease was primarily driven by weakened support in the upstream wood pulp market and a slight decline in demand from downstream industries. To manage inventory levels, VSF manufacturers proactively lowered prices, leading to bearish market sentiment. Throughout the quarter, the market remained unstable, with notable price fluctuations. Examining the broader trends and seasonality, VSF prices in South Korea saw a decline of around 5.5% in the first quarter of 2024 compared to the previous quarter. This decline can be attributed to reduced demand from downstream industries and heightened competition from alternative fiber types. Regarding price comparisons between the first and second half of the quarter, specific data was not provided, precluding commentary on any price differences during this period. In summary, the pricing environment for VSF in the APAC region during Q1 2024 has been characterized by fluctuations, with a decline of approximately 9% in Q1 2024 compared to the same quarter of the previous year.
Europe
In the first quarter of 2024, the European market for Viscose Staple Fibre (VSF) saw a mix of pricing trends, initially declining and stabilizing, followed by a slight incline towards the end of the period. Several factors influenced the pricing dynamics of VSF in Europe. Despite a moderate to low availability of VSF, manufacturers successfully maintained smooth operations. However, the market faced challenges due to high raw material prices and increased marine freight costs, impacting the supply-demand balance. On the demand side, there was a moderate to high level of demand for VSF, driven particularly by import demands from Asian countries. In Germany, VSF prices stabilized in February 2024 after experiencing a notable decline at the beginning of the quarter. This stabilization was primarily attributed to favorable production costs, driven by a decrease in raw material prices, especially cotton. However, there were indications of a potential rebound in the following months. Overall, the pricing environment for VSF in Europe remained fluctuated, with supply and demand factors playing crucial roles in influencing prices. In conclusion, VSF prices in the German market increased by 1% in the first quarter of 2024 compared to the previous quarter, while experiencing an approximately 8% decrease compared to the same quarter of the previous year.
For the Quarter Ending December 2023
North America
Throughout the fourth quarter of 2023, the Viscose Staple Fiber (VSF) market consistently experienced a downward trend. The US VSF market showed marginal fluctuations and confirmed a downtrend due to stable supply dynamics. Economic activity in the US remained subdued in November, contributing to the overall downward trajectory.
Supply chain in the region remained smooth without significant concerns, resulting in no observed cost pressures on VSF prices during this period. Despite a previous month's price hike driven by increased production costs, the market's narrowness, influenced by a delicate balance between demand and supply, supported the price trajectory.
Concurrently, downstream manufacturers faced a slight decline in demand and weakened purchasing willingness. To address substantial inventory levels, VSF manufacturers proactively reduced prices aggressively, aiming to attract new orders. This strategic move, aimed at managing inventory and stimulating market demand, had a notable impact on the overall dynamics of the US VSF market, concluding with VSF 1.2D settling at USD 2238 CFR Texas in December 2023.
APAC
During the first half of the fourth quarter of 2023 in the Asia-Pacific (APAC) region, Viscose Staple Fiber(VSF) production capacity remained constrained, and downstream industries showed a slowdown, with a slight decrease in start-up load. While there was a mild improvement in the Purchasing Managers' Index (PMI), the market price for VSF dropped in the second half, influenced by lingering demand weaknesses in the manufacturing sector. Raw material dynamics, predominantly derived from wood pulp or plant-based sources, played a pivotal role in shaping pricing trends. VSF manufacturers responded to surplus inventory challenges with aggressive price reductions to stimulate new orders and alleviate stock accumulation. Despite challenges, the China General Manufacturing PMI showed a slight uptick in December 2023, suggesting a marginal improvement in the manufacturing sector's performance and potentially signaling a more optimistic outlook for the industry, despite the recent decline in the VSF market. Conclusively, the price for VSF dipped and settled at USD 1943/MT FOB Shanghai during December 2023.
Europe
In the European market for Viscous Staple Fiber (VSF), prices experienced a marginal appreciation in the first half of the fourth quarter of 2023. This was attributed to a 1.1% decline in industrial chemical production across the Eurozone and increased demand from the downstream textile industry as winter apparel demand grew. Improved purchasing sentiments, especially with the festive season approaching, further strengthened demand in the European market. This contrasted with the economic conditions in Germany, where export orders were down by 0.3%, and GDP was expected to contract by 0.5%, indicating almost recessionary conditions. Inflation rates, according to Statistics Bundesamt, were recorded to be down to 3.8%. In the second half of the quarter, the VSF market in Germany experienced a decline due to demand weakness in the manufacturing sector. The cost dynamics of raw materials, primarily sourced from wood pulp or plant-based origins, played a significant role in shaping overall pricing trends in the VSF market. Conclusively, the price for VSF settled at USD 2220/MT FOB Hamburg during December 2023.
