Viscose Filament Yarn (VFY) Ex-Surat prices are expected to remain stable in June 2026, following a soft and slightly bearish trend observed in the previous month. Market conditions indicate a balanced environment where moderate procurement from domestic textile manufacturers is likely to offset weak export-driven demand. Stable raw material availability and steady production economics are expected to support overall price stability in the near term. Seasonal factors, including monsoon-related slowdown and anticipated post-monsoon festive restocking, may gradually support demand recovery in the coming months. In the previous month, the VFY market experienced mild downward pressure due to cautious buying, comfortable inventory levels, and periodic logistics constraints. While supply remained adequate and production activities were steady, demand from export-oriented segments stayed subdued, limiting overall market momentum. Looking ahead, the market is expected to remain steady in the short term, with potential improvement likely in the following month as restocking activity gains traction and market sentiment gradually strengthens.
Viscose Filament Yarn (Bright 40F) Ex-Surat VFY prices are expected to remain steady in June 2026, according to ChemAnalyst, following a soft trend in May 2026. The VFY market is expected to remain balanced, with moderate procurement by textile manufacturers offsetting weak export momentum. Stable feedstock costs are likely to support production economics and overall VFY stability. Seasonal monsoon slowdown and post-monsoon festive restocking are expected to influence demand recovery and price direction.
In May 2026, VFY prices recorded a decline of 1.32% month-on-month as the VFY market turned soft and bearish. Early May saw VFY sellers with limited pricing power as supply outpaced cautious buying. Mid-month VFY conditions were influenced by logistics headwinds, while late-month dynamics were driven by comfortable inventories and muted restocking. This kept pressure on VFY quotations despite steady mill operations. Overall, demand was routine, closing with a modest retreat in prices, as per ChemAnalyst analysis.
On the supply side, feedstock conditions were generally benign: dissolving wood pulp, caustic soda, and sulphuric acid remained available without disruption, supporting steady production economics and uninterrupted operations at integrated facilities. Comfortable inventory positions and higher spot availability following capacity integrations eased market tightness through mid-month, limiting sellers’ leverage. However, logistics challenges intensified, with port congestion causing landside friction. Vessel waiting times at Mundra rose to 3.83 days from 2.33 days, while Nhava Sheva recorded 2.5 to 2.74 days, according to ChemAnalyst data. Truck driver shortages and terminal constraints added sporadic distribution strain, though overall supply remained adequate.
Demand patterns were mixed across downstream sectors, with domestic textile and apparel clusters providing routine consumption for sarees, ethnic wear, embroidery fabrics and decorative textiles, but without aggressive accumulation. Textile and apparel remained key support for volumes, though buying was limited to near-term needs. Home textiles, fabric converters and export-oriented apparel segments remained soft, with subdued export enquiries curbing restocking for garment orders and shipments. Export demand remained weak during the period.
According to market information, India’s textile and apparel exports declined 4.44 per cent during the first two months of fiscal 2026-27 (April–May). Apparel exports fell 14.17 per cent, while textile exports rose 2.47 per cent, leading to an overall year-on-year (YoY) decline of 5.40 per cent in May 2026. For fiscal year 2025-26 (April–May), shipments declined by 2.21 per cent. In May 2026, exports fell to $3.024 billion from $3.196 billion. As per CITI analysis, apparel exports stood at $1.297 billion, while textile exports reached $1.726 billion on a year-on-year basis.
Looking ahead to June 2026, the VFY near-term outlook is for stable prices as inventory adjustments balance supply and demand. Analysts expect improvement in July, but the June VFY market is likely to remain steady overall. Moderate procurement by textile manufacturers and weak export momentum should keep the VFY market balanced. Stable feedstock costs continue to support VFY production economics. However, any material shift in freight costs or geopolitical disruptions could alter the VFY trajectory, and the outlook remains subject to prevailing market conditions.
