High-Cost Pressure to Uplift the Market Price of Viscose Staple Fibre

The viscose staple fiber market rose by 5% due to a high production rate and stable demand from the downstream textile industry. This price increment is mainly attributed to the increased production rate with high energy prices. Therefore, the Viscose Staple Fibre market rose in China and got assessed at USD 2207/ton as on 7^th of April.

Due to a decline in the price of raw material polyester and PTA and reduced Brent crude futures, the global oil benchmark fell to $101.40 per barrel. Crude oil prices dipped in the worldwide market due to the recent announcement by US President Joe Biden to release one million barrels daily for the next six months from its strategic reserves.

The recent resurgence of covid in the Chinese market has further hampered the export of the product to its overseas market as India depends mainly on China to export its raw material PTA, which has been restricted as a significant part of the city Shanghai is in lockdown affecting the supply chain.

In addition, the government has taken a proposal to start up Mega textile parks under PM MITRA by March 15. Earlier, the government has also taken several steps to remove the anti-dumping duty on viscose staple fiber (VSF), synthetic cellulosic fiber, and additionally (PTA), a critical raw material to make polyester staple fiber and acrylic fiber, to encourage man-made fiber (MMF) in the country.

The authorities even introduced a production-connected incentive (PLI) scheme for textiles supporting MMF and technical textiles and planned incentives. The recent process of signing free trade agreements with major countries like the UAE has encouraged the export of the product.

As per ChemAnalyst, the” Viscose Staple Fibre market may witness stability in its price on the back of high demands from downstream industries. The supply chain may also improve with reduced cost pressure and the availability of good margins in the market.