For the Quarter Ending March 2025
North America
In Q1 2025, the North American Viscose Filament Yarn (VFY) market followed a generally bearish trajectory, shifting from a bullish start in January to pronounced weakness by March. January saw a noticeable price rise, fueled by strong demand from downstream sectors such as textiles and home furnishings, coupled with elevated import costs. Exporters front-loaded shipments amid concerns over a potential East Coast port strike, which drove up freight rates and landed costs.
As the quarter progressed, the market entered a more stable phase. Despite Spring Festival-related disruptions in Asia, steady import flows and ample inventories ensured consistent supply. While cold weather posed production challenges, feedstock costs remained unchanged. Demand from textile and apparel sectors was moderate but held firm, supported by a resilient labor market. Anticipation of regulatory changes also prompted buyers to build inventories, minimizing price volatility.
By March, however, market conditions weakened noticeably. Persistent inventory levels and continuous imports were met with declining consumer sentiment and reduced textile demand. A drop in freight rates, easing import expenses, and uncertainty around tariffs further eroded buyer confidence, leading to limited purchasing activity and keeping prices under downward pressure.
Europe
The European Viscose Filament Yarn (VFY) market followed a bullish trajectory throughout most of Q1 2025, with notable price gains in January and February, followed by a mild correction in March. January saw a sharp price surge, fueled by strong post-holiday demand from the textile sector and proactive restocking efforts, particularly in Germany. Tighter regional supply, driven by low inventory levels and ongoing logistical disruptions—such as port congestion and labor shortages—further amplified the upward momentum. The bullish trend extended into February, underpinned by steady buying from the textile and apparel industries. Although weather-related disruptions and delays in container movement applied some pressure to the supply chain, VFY availability remained stable, supporting continued price growth. However, March brought a modest reversal in the trend. The market softened amid growing supply levels, weakened global textile exports, and more cautious purchasing behavior. Even with low freight rates and consistent production inputs, prices came under pressure due to subdued downstream demand. Additionally, labor strikes at key European ports compounded logistical bottlenecks, further complicating trade flows and contributing to the overall price adjustment by quarter-end.
APAC
In Q1 2025, the Viscose Filament Yarn (VFY) market across the APAC region showed a mixed pricing trend, influenced by fluctuations in supply conditions, demand patterns, and production costs. Within the region, the Indian market experienced notable volatility; however, prices remained largely steady. By March 2025, VFY prices recorded a modest increase of just 0.2% compared to the end of the previous quarter, reaching INR 413,300/MT Ex-Surat. In January, VFY prices remained stable across the region, supported by balanced supply-demand fundamentals. Domestic manufacturers resumed post-holiday operations swiftly, ensuring sufficient inventory levels, while moderate demand from the textile sector for spring-season replenishment sustained steady consumption. However, in February, prices eased slightly amid weakening demand and liquidity constraints in the textile sector. Stable supply, reduced freight costs, and falling prices of key auxiliary chemicals further compressed VFY production costs. Market sentiment remained sluggish despite stable procurement. By March, prices rebounded, supported by improved domestic manufacturing, consistent feedstock availability, and strong offtake from both local and export-oriented textile sectors. Favorable trade dynamics, such as U.S. tariffs on Chinese goods and India’s lower tariff barriers, strengthened India’s position as a preferred sourcing hub. Additionally, freight cost reductions encouraged higher procurement, while robust growth in the home textile segment and proactive trade policies further uplifted market sentiment, contributing to the upward price movement.
For the Quarter Ending December 2024
North America
The North American Viscose Filament Yarn (VFY) market faced a declining trend throughout Q4 2024, influenced by weak demand, economic uncertainties, and external market pressures. At the start of the quarter, the U.S. VFY market saw a dip as demand from the apparel sector remained subdued due to inflationary challenges and shifts in consumer spending behavior. Additionally, stable import prices from global markets kept price movements restrained.
Midway through the quarter, the market exhibited a more stable trend with slight fluctuations in pricing. This marginal improvement was supported by higher import costs and tighter global supply conditions. However, domestic availability of VFY remained sufficient, and demand from downstream industries like textiles stayed moderate, preventing significant price hikes.
Toward the end of the quarter, bearish conditions resurfaced due to weak demand and increased imports of low-priced VFY, particularly from Asia. Reduced procurement activity, high inventory levels, and limited demand from the textile sector further dampened market sentiment, contributing to the overall downward trajectory in the region.
Europe
The European Viscose Filament Yarn (VFY) market experienced a consistent declining price trend during Q4 2024. In the early part of the quarter, lower production costs, ample inventory, and weak demand, particularly in sectors like paper and textiles, pushed prices downward. Despite favorable energy costs and stable inflation, supply remained abundant while demand stayed muted. By mid-quarter, the market continued its downward momentum as demand from key sectors like apparel and textiles dwindled further. Rising inflation, cautious economic conditions, and changing consumer spending patterns weighed heavily on market dynamics, keeping price recovery at bay. Efforts to manage inventory were insufficient to counterbalance the sluggish demand. In the final phase of the quarter, prices remained under pressure due to weak textile demand, logistical challenges, and economic uncertainty. Although production costs stayed low and supply was steady, reduced purchasing activity further constrained the market. The German VFY market faced the most significant challenges, reflecting the broader regional struggles during the last quarter of 2024.
APAC
The Viscose Filament Yarn (VFY) market in the Asia-Pacific (APAC) region experienced a mixed trend during Q4 2024, influenced by fluctuating demand, supply dynamics, and economic factors. In October, oversupply and subdued demand drove prices downward as high inventory levels and moderate production outpaced consumption. Despite stable feedstock costs, weaker downstream demand from textiles and reduced export activity pressured the market. However, November brought a positive shift, with strong domestic and international demand fueled by seasonal trends in fashion and apparel and increased exports. Geopolitical disruptions in neighboring markets further supported the region’s market position. Rising feedstock and production costs also contributed to the upward price movement. By December, the market faced renewed downward pressure as importing nations offered significant discounts during the destocking season. Elevated inventory levels and reduced purchasing from downstream industries softened prices despite stable logistics and balanced supply. VFY prices reflected the market dynamics during the end of the quarter, particularly in India, settling at USD 4827/MT.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Viscose Filament Yarn (VFY) market exhibited a steady pricing trend, influenced by a favorable balance of supply and demand dynamics. Throughout the quarter, consistent demand from key sectors such as textiles and fashion supported this stability. VFY's increasing preference due to its quality and sustainability attributes further bolstered its market position.
Supply conditions played a crucial role in maintaining price steadiness. Manufacturers effectively managed production levels and maintained adequate inventories, ensuring a reliable flow of products to meet market needs. The consistent availability of raw materials, particularly dissolving pulp, also helped mitigate potential price fluctuations. Additionally, logistical efficiencies allowed for timely distribution, further reinforcing the steady pricing environment.
Despite fluctuations in global market conditions, VFY prices in North America remained stable, with only minor adjustments observed during the quarter. Overall market sentiment was positive, as both suppliers and consumers anticipated stable demand moving forward, positioning the VFY market favorably within the broader economic landscape.
APAC
In Q3 2024, the APAC region witnessed a decline in Viscose Filament Yarn (VFY) prices, primarily driven by reduced production costs linked to lower feedstock prices. A significant decrease in the cost of dissolving pulp, a vital raw material for VFY production, enabled manufacturers to adopt more competitive pricing strategies in the market. This shift allowed producers to respond effectively to changing market conditions while maintaining their margins. Throughout the quarter, demand from downstream industries, particularly the textiles and apparel sectors, remained moderate, characterized by steady consumption levels. However, this stable demand did not exert upward pressure on VFY prices, as the increased supply resulting from lower production costs outweighed any potential gains from demand. In India, the market experienced notable price fluctuations, with VFY prices declining by 5% compared to the same quarter last year. Interestingly, quarter-on-quarter prices in the Indian market rose by 1.5%. By the end of the quarter, VFY prices in India were noted at USD 4892/MT, reflecting ongoing adjustments amid prevailing market dynamics.
Europe
In Q3 2024, the EU region experienced a decline in Viscose Filament Yarn (VFY) prices, primarily driven by lower production costs resulting from reduced feedstock prices. The significant decrease in the cost of dissolving pulp allowed manufacturers to lower their prices competitively in the market. Despite these favorable production conditions, overall demand remained moderate to low, largely influenced by weak consumer sentiments across various sectors. Throughout the quarter, the sluggish demand was particularly evident in the textiles and apparel industries, where purchasing activity did not match production levels. However, by the final month of the quarter, there was a slight improvement in consumer sentiment, partially fueled by a cut in interest rates by the European Central Bank (ECB). Unfortunately, this boost in sentiment did not translate into increased VFY prices, as the market was burdened by excess inventory. As a result, the combination of low production costs and moderate demand led to a sustained decline in VFY prices, reflecting ongoing adjustments to market dynamics in the EU region.
For the Quarter Ending June 2024
North America
In Q2 2024, Viscose Filament Yarn (VFY) prices in North America exhibited a bearish trend, primarily due to diminished demand from downstream sectors. The textile industry faced significant challenges, leading to reduced consumption of the Viscose filament yarn.
Textile mills, in particular, experienced severe impacts as the U.S. manufacturing sector saw a loss of approximately 8,000 jobs in June, according to the Bureau of Labor Statistics (BLS). A survey of purchasing and supply executives across various sectors, including textile mills, apparel, and leather, highlighted a contraction in manufacturing activity by the end of the second quarter. This downturn was marked by a decrease in new orders, production, and employment, reflecting a broader slowdown in manufacturing.
Furthermore, the Office of Textiles and Apparel (OTEXA) reported that U.S. imports of apparel dropped to 1.963 million square meter equivalents (SME) in May 2024, a decline of 1.3% compared to May 2023. This reduction in imports mirrored the weakened demand within the U.S. market, affecting the VFY sector.
In summary, the Viscose Filament Yarn market in North America remained bearish during Q2 2024. The combination of low downstream demand, reduced manufacturing activity, and a decrease in apparel imports contributed to the sustained decline in VFY prices throughout the quarter.
APAC
In Q2 2024, the APAC region saw a significant increase in Viscose Filament Yarn (VFY) prices, with India experiencing the most pronounced fluctuations. Several factors contributed to this upward trend. Strong demand from both domestic and international markets, combined with disruptions in supply chains, led to tighter supply conditions, which drove prices higher. Additionally, rising production costs, particularly due to increased wood pulp prices, further fueled the surge in VFY prices. Seasonal factors also played a role, with heightened demand during the festive season adding to the price increases.
In India, VFY prices consistently rose throughout the quarter, reflecting a positive pricing environment. The interplay of high demand, supply constraints, and increased production costs resulted in a 3% price increase compared to the previous quarter. A notable price difference of 3% between the first and second halves of the quarter underscored the strengthening price momentum. By the end of the quarter, VFY was priced at USD 5074/MT Ex-Surat, indicating a bullish market sentiment and a strengthening pricing environment for VFY in India.
Europe
In Q2 2024, the Viscose Filament Yarn (VFY) market in Europe experienced a continuous upward trend, marked by substantial price increases due to several key factors. The primary driver of this trend was the significant rise in feedstock costs, especially wood pulp, which surged due to increased demand from the paper manufacturing industry. This escalation in feedstock prices led to higher production costs for VFY manufacturers, who then raised their prices to sustain profitability. Additionally, logistical issues and rising freight charges exacerbated the situation, further inflating overall costs and contributing to higher VFY prices.
Germany, a key market within the region, saw the most notable price fluctuations this quarter. The German market experienced strong positive sentiment, fueled by robust demand from the textile sector and a well-balanced supply-demand dynamic. Seasonal factors also influenced the market, with increased orders for sports textiles and related products aligning with major events like the 2024 European Football Cup, which boosted market activity. Overall, Q2 2024 presented a distinctly positive pricing environment in Germany, driven by increasing input costs, logistical challenges, and strong demand dynamics.
