Introduction: Looking back on 2016, viscose staple fiber can be said to be “making great progress” all the way. The price once exceeded the quoted price of 17,000 yuan/ton. Although the price has slightly adjusted back at the end of the year, its popularity is already “unmatched by fiber”. The editor still remembers that when the market was at its peak in September, a major sticky short factory reported that orders had been scheduled for two months! In the first quarter of 2017, the sticky short-term industry expanded its capacity by 80,000 tons and continued to maintain a strong development momentum. Data such as prices, profits, and industry production and sales were all on the strong side. Chunjiang Plumbing Duck Prophet, now the leading chemical fiber company is starting to feel a little restless…
On April 11, Sateri Group signed an investment agreement with the Jiujiang Municipal Government of Jiangxi Province, with a total investment of approximately 12 billion yuan (US$1.75 billion) and an additional 1 million tons of cellulose fiber production capacity. The project will be constructed in four phases. Each phase is 250,000 tons and is scheduled to start construction in the fourth quarter of this year. This is Sateri’s second 1-million-ton production capacity project in Jiujiang. Prior to this, the Sateri (Jiujiang) 1-million-ton project, also invested and constructed by Sateri in 2015, has settled in Hukou County High-tech The second phase of the industrial park is currently under intensive construction and is scheduled to be put into operation in the first quarter of 2018.
These 1 million tons of viscose production capacity account for domestic proportion
It is understood that from 2010 to 2016, my country’s short-term sticky industry maintained an overall capacity expansion trend, but the growth rate showed a slowing down trend. In 2010, cotton prices soared, benefiting from the short-cut cotton industry. In 2011, the production capacity of the short-cut cotton industry increased by 740,000 tons year-on-year. From 2010 to 2016, the average growth rate of production capacity in my country’s sticky short-term industry was 10%. Among them, from 2010 to 2012, it was 21%. From 2013 to 2016 it was 5%. China has gradually become a major viscose fiber producer since 1996. In 2015, my country’s viscose staple fiber production capacity accounted for 66% of the world’s total, and its output reached 3.75 million tons in 2016. It can be said that the 1 million tons of viscose produced by Sateri Group accounts for one-third of the total domestic production capacity.
Behind the expansion of chemical fiber faucets, these data make them salivate
In fact, in addition to Sateri’s new production capacity, according to statistics, my country’s viscose staple fiber industry will have a production expansion plan of 300,000 tons in 2017. While other chemical fiber products are controlling production capacity, why have chemical fiber manufacturers started to make big moves this year? What’s the secret?
Downstream market: Mainland demand appears stable, Xinjiang performs strongly
Mainland
The main demand areas for Niandu inland are Gaomi, Peixian, Xiaoshan and Fujian. Its yarn industry has been relatively complete and stable since its development. Gaomi and Peixian are mainly rayon yarns, and the demand for short-length yarn is relatively stable. Xiaoshan and Fujian yarn enterprises produce a relatively rich variety of yarns, and can adjust their product varieties according to the short-term viscose market trends.
Xinjiang Region
According to market understanding, with the steady development of the textile industry in Xinjiang, the overall scale of local spindles is expected to expand to about 30 million in the future, correspondingly, the number of rayon spindles will increase simultaneously.
At present, there are local sticky shorts manufacturers whose self-use rate of their products is as high as 70%, and it is expected to improve in the future. Correspondingly, the digestibility of sticky short-term supply in Xinjiang has steadily increased.
Some yarn companies are restricted by their own scale, comprehensive costs and other factors. Compared with large-scale viscose yarn and rayon yarn companies, it is difficult to have an operational advantage. In the future, the yarn varieties in Xinjiang will still be dominated by cotton yarn.
The demand for non-woven fabrics has exploded, and the proportion of downstream products has been improved and optimized
Affected by the aging population, second-child policy and other policies, the demand for non-woven fabrics has promising prospects. As people’s living standards improve, non-woven products and varieties are increasing day by day in daily life and medical fields. Sticky short products have skin-friendly properties, and demand in the non-woven field is expected to increase. On the other hand, the market was strong again from 2015 to 2016, and profits improved accordingly.
In recent years, the growth rate of production capacity in the sticky short-term industry has slowed down, domestic demand has increased, and the supply and demand side has improved, supporting the sticky short-term market from the root. From 2015 to 2016, the price trend of the sticky short market was relatively strong, and industry profits improved accordingly.
Fundamentals: With both supply and demand booming, the industry is booming
The average operating rate of the sticky short-term industry was 84% in 2015 and 89% since the beginning of 2016. The supply side of the sticky short industry is booming.
In 2015, the average production and sales rate of the sticky short industry was 70%, and from the beginning of 2016 to the present, it was 81%. When the market supply is relatively abundant,, the production and sales ratio remains at a high level, the market holds digestion potential, and trading is relatively active.
The editor’s outlook on the market outlook: Judging from this year’s market trends, viscose staple fiber has continued to gain more say in the entire market, and its price fluctuations are enough to drive the price trends of pulp and rayon yarn. At present, the raw material inventories of spinning mills have mixed performance. Unless prices continue to move forward, it is unlikely that spinning mills will make centralized large-scale purchases of raw materials. Despite this, industry concentration continues to rise, leading companies have better control over prices, and the industry as a whole has a strong intention to raise prices. In addition, manufacturers generally implement early contracts, so there is still room for price increases!
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