Viscose Staple Fiber (VSF) prices experienced a bullish price trend in September 2025, across the key global market including United States, Europe and the APAC. This is mainly associated with the supply demand imbalances, limited inventory, seasonal factors and trade related complexities.
In the United States market, prices for the VSF rose during the recent period. This price rise is driven by the tight supply conditions following the trade tensions and tariff, curtailing imports from the overseas market. This condition exerted the upward pressure on the VSF prices despite the steady demand conditions. Though the mid-month experience slight seasonal replenishment and supported the prices steadily. As a result, VSF prices rose by 1.63% during the week ending on September 12, 2025, while the prices for the VSF declined by 0.53% during the week ending on September 19.
European market mirrored the same trend, especially in Germany, where the prices for the VSF rose gradually week-on-week basis during the period. Despite the sluggishness across the downstream market, seasonal stocking and the procurement for festive season, exerted upward pressure on the available inventory and allowed the prices to rise. Amid the soft market conditions for VSF, local market participants adopted a cautious approach and were holding the moderate inventory. As a result, prices for the VSF in the German market rose by 1.24%.
Across the Asian market, prices for the VSF exhibited a bullish trend coupled with the low inventory and the change in demand across the downstream market. In the Chinese market, VSF prices started the month with a stable note, later, the prices rose w-o-w basis and inclined by 1.8% on a FOB Shanghai basis.
Market participants reported that the inventory across the market remained weak coupled with the long sluggishness and the traditional off season across the market, which encouraged the manufacturers to limit the operation, to avoid the over-inventory amidst the weak market conditions.
Though the downstream yarn mill operating rates experienced a slight uptick, second week onwards, though the overall demand remained weak. While the domestic market experienced weakness overall, the export demand supported the prices to rise, coupled with the upcoming festive season in neighboring region like India. On the production costs side, prices for the key feedstock dissolved pulp and auxiliary chemicals including caustic soda prices remained stable, restricting any production costs during the period.
