For the Quarter Ending March 2023
North America
The declining demand for Viscose Filament Yarn (VFY) was witnessed throughout the first quarter of 2023. This price decline was likely due to a combination of factors, including declining demand, increasing inflation, and fluctuations in the pricing of significant raw materials. Since the textile sector was susceptible to macroeconomic conditions, changes in these factors had a significant impact on the industry. Despite attempts by producers to grow inventories while keeping employee levels mostly constant, capacities were believed to be adequate for current demands. However, the weak demand for yarn and no signs of improvement from downstream for producing fabrics for clothing and home textiles meant that manufacturers had to lower prices to move their inventory. Overall, it seems that the textile industry was facing a challenging market environment characterized by weak demand and a surplus of inventories.
APAC
The slower buying in the region put pressure on prices in the Asian Viscose Filament Yarn (VFY) market; as a result, the market witnessed a lowering throughout the first quarter of 2023. The downstream demand remained weak at the same time, and Viscose Filament Yarn companies passively dropped prices to match the declining raw materials market and shift to the downward channel. Restricted seasonal garment consumption was another factor in the fall in clothing consumption. But recently, the industry has been struggling because of low domestic output as a result of the slow offtake in recent months. The Index of Industrial Production (IIP) for textiles similarly shows a persistent fall in textile production in the Indian textile industry. As a result, the Viscose Filament Yarn market dropped because of an adequate amount of inventory due to the slowdown in demand.
Europe
It appeared that the domestic Viscose Filament Yarn (VFY) industry was facing a decline in profit and volume growth due to slowing downstream demand from textile industries. This was causing manufacturers to lower their margins as sales were modest and inventories were high. However, the productivity of units was at its highest, which means that there was no observed congestion for product delivery by ship, rail, or road, while manufacturers had ample inventories to fulfill consumer requirements. However, despite these favorable conditions, the output index fell by 1.2 points among textile manufacturers and 1.3 points among apparel manufacturers over the January-March 2023 period. This decline in the output index suggests that textile and apparel manufacturers were facing challenges in the current market conditions. The slowing demand for VFY was likely due to a variety of factors, such as changing consumer preferences, increased competition, or changes in the global economy.
For the Quarter Ending December 2022
North America
In North America, during the first half of the fourth quarter, Viscose Filament Yarn was in extremely high demand. Volatility and high raw material prices slowed the expansion of the target market. However, huge demand from the downstream industries of clothes, upholstery, and other bedding materials fostered the growth of Viscose Filament Yarn in the region. Later, as the US struggled with production, the stockpile decreased, putting pressure on both export and domestic pricing. As a result, the cost of Viscose Filament Yarn decreased in the first half of Q4, while it witnessed high order during the second half of the fourth quarter.
APAC
In the first half of the fourth quarter, the cost of Viscose Filament Yarn decreased. The declining market demand estimates were the main cause of the price decrease. Due to poor offtakes from downstream textile industries, the Chinese market's demand for clothes, upholstery, and other bedding materials ultimately fell. Additionally, a covid ban prompted by a rise in new cases had subdued the local market's fervor. Manufacturers witnessed high stocks amongst themselves since the sale of materials was reduced. Later in the second half, the VFY price increase was mostly brought on by the increasing market demand expectations. The demand for the VFY was great, and the operational load of units was also very high either.
Europe
The Viscose Filament Yarn pricing trend has been rising since the start of the fourth quarter. Due to the rising cost of the feedstock wood pulp, the region's production was curtailed, and Viscose Filament Yarn production costs increased across Europe. Later in the second half, the domestic region's sales-to-inventory ratio was also out of balance as a result of the downturn in demand from the clothes, upholstery, and other bedding materials industries. It is clear from the aforementioned causes that rising production costs, and increased demand from downstream industries, resulted in the decline in stocks in the region, which caused an incline in VFY prices in the second quarter of 2022.
For the Quarter Ending September 2022
North America
Due to unfavorable market conditions and low commodity prices, Viscose Filament Yarn (VFY) prices declined during the third quarter in the American market. The excessive product supply and the low demand in domestic markets were the leading causes of the drop. Furthermore, the decreasing price trend in the region was influenced by a pessimistic regional buying attitude. In addition, considerable domestic upstream supply also contributed to the decline in the feedstock price, which in turn had a direct impact on the downward trend in Viscose Filament Yarn Prices.
APAC
Viscose Filament Yarn (VFY) prices rose throughout the third quarter of 2022, backed by expensive freight amid ample queries from the domestic market. The Indian textile sector was rebounding slowly under the influence of economic recovery and additional efforts by the Indian government. Downstream industries were observed increasing yarn prices because they were trying to pass on the higher cost of production. However, the weaving industry and garment manufacturers felt higher production costs could discourage end-users. However, Viscose Filament Yarn's demand for its utilization in luxury fabrics such as satin and velvet was found to be moderate in the domestic market. The price for VFY settled around USD 5894/MT Ex-Surat during September.
Europe
Due to excessive stockpiles and sluggish market sentiment throughout the third quarter of 2022, the price of Viscose Filament Yarn (VFY) decreased in the German market. The abundance of product supply and the weak demand in the domestic and foreign markets are just two reasons for the decline. Additionally, the downward price trend in Germany was aided by the bearish regional buying attitudes. The increased upstream feedstock supplies also caused the price of Viscose Filament Yarn to decline in the domestic market. Therefore, the ChemAnalyst database suggests of month-on-month decline in viscose filament yarn prices.
For the Quarter Ending March 2022
North America
In the first quarter of 2022, the Viscose Filament Yarn market outlook demonstrated an upward trajectory across the North American region. The demand has stayed strong, especially from the downstream textile sectors throughout the first quarter. A surge in raw material prices and high freight costs have further exacerbated the prices of VFY in the North America. The increase in the price of energy, shortage of labor, freight cost, and lower inventories contributed to the increasing prices of VFY in the USA. Furthermore, rising inflationary pressure also intensified the overall situation and put an extra burden on domestic players. The demand fundamentals for the product from the domestic textile market bolstered the price uptrend in the North American region.
Asia Pacific
Viscose Filament Yarn's (VFY) prices increased in Asia during the first quarter of 2022 due to increased demand from downstream textile and clothing sectors. In India, prices were hovering around USD 5263/MT-USD 5409/MT Bright 40 F and an overall surge of 4.8% quarterly. In India, the price increased in Q1, followed by an improvement in demand and consistent offtakes from the downstream sectors. During Q1 of 2022, the price was assessed to be tracing an upward trend across the Asia Pacific region as the raw material prices increased due to dual-energy policy restrictions in China and a significant rise in manufacturing costs. The traders were compelled to revise their offers to sustain their margins, as imported or exported cargoes were getting expensive daily under inflationary pressure.
Europe
Viscose Filament Yarn (VFY) prices witnessed consistent fluctuations in the European market in Q1 2022. The demand from the downstream apparel and textile market was firm. Consequently, market activities remained high, and the offtakes from the textile industries seesawed during the first quarter of 2022. VFY prices in Europe were assessed at nearly USD 5300/MT by March. Although the production level remained stable at several production units against the rising demand from the downstream sector, surging operational costs resulted in a significant hike in the regional producers' Viscose Filament Yarn (VFY) prices. The European VFY market saw limited supplies due to wavering feedstock availability, limited imports, and transportation delays in the northwest European region.
For the Quarter Ending December 2021
North America
The overall market outlook showcased an upward trend in the North American region due to increase in the price of raw material in the US domestic market. Additionally, increase in the price of energy, freight cost, shortage of labor and low dealers’ inventories were major factors which lead to the increase in the price in the US market. Meanwhile, demand from the downstream construction, pharmaceutical and other end user industries remained stable throughout the quarter. Furthermore, rising inflationary pressure also intensified the overall situation, and put the extra burden on domestic players. In addition, demand fundamentals for the product from the domestic textile market maintained overall stability, bolstering the price uptrend in the regional market.
Asia Pacific
During the Q4 of 2021 the price assessed to be tracing upward trend across the Asia pacific region as the price of the raw material has increased due to dual energy policy restriction in China, and a significant rise in manufacturing cost. In India, the price demonstrated increment in Q4 (for October-November) followed by improvement in demand and consistent offtakes from the downstream sectors. Another reason for increase in the price is the soaring freight charges, which compelled traders to revise their offers to sustain their margins, as imported or exported cargoes were getting expensive day by day. Conclusively, VFY assessed around USD 5138/MT during December on India.
Europe
The European market demonstrated a significant increase in the market price during the quarter 4 due to the high cost of energy which left significant impact on the price. Additionally, increase in the freights cost, expensive raw material across Europe region was also the key problem for producer. The prolonged supply chain constraints container shortage, labor shortage and port congestion which cause the impact on the market segments in Q4, nevertheless the demand from the downstream industries remain sturdy during this quarter.
For the Quarter Ending September 2021
North America
In the third quarter of 2021, the overall market outlook demonstrated an upward trajectory across the North American region. The resumption of industrial activities after hurricane Ida’s landfall that caused the shutdown of several manufacturing units in the US Gulf Coast compelled the textile manufacturers to boost production in Q3. In terms of demand, it has remained strong from the downstream sectors throughout the quarter. Surging raw material prices and high freight costs have further exacerbated the increased prices of VFY during the quarter.
Asia Pacific
In the Asia Pacific region, the prices of VFY kept on climbing in the 3rd quarter of 2021 due to firm demand from the textile manufacturers. In India, VFY prices rose effectively in July, backed by spiralling freight charges amid ample queries from the domestic market. The Indian textile sector is rebounding slowly under the influence of economic recovery and additional efforts by the Indian government. The price of Viscose Filament Yarn (Bright 40F) was last assessed at USD 4996/MT Ex-Surat during September. Recently, the government has eradicated antidumping duty from Viscose staple fiber in order to protect the profit margin of downstream users, which enhanced the market sentiments for textile manufacturers in the Indian market. Viscose fiber and spun yarn prices declined in China due to ample availability and low demand.
Europe
The European market witnessed a significant rise in the pricing trend of VFY in Q3 2021 due to high energy costs which will potentially increase price further in the fourth quarter. Soaring freight and raw material costs also remained a key worry for producers and the companies seemed to be taking steps to prevent further margin erosion. Energy cost adjustments and additional surcharges further raised the regional offers. High level of textile exports outside Europe during the second and third quarters of 2021 forced producers like Kelheim Fibres GmbH to transfer these cost escalations to their end customers.
For the Quarter Ending June 2021
North America
In the North American region, the restoration of the industrial infrastructure in the US Gulf coast accelerated the textile market activities with improvement in supply chains in Q2 2021. The pricing movement of Viscose Filament Yarn (VFY) remained on an uptrend as the feedstock wood pulp prices observed a hike of 40% since January 2021 and imports from the overseas market remained firm with an additional support of the high freight costs. Mass vaccination programmes amplified the public movement which provided extended support to the downstream activities. As a repercussion, the VFY demand outlook improved in the second quarter of 2021 and prices showed a marked surge due to multiple factors supporting the inflationary trend.
Asia Pacific
In China, the Viscose Filament Yarn (VFY) market was weak throughout the second quarter of 2021 as high-priced raw materials amidst rising inflation rate in China and consistent rise in the prices of cotton strengthened the wait and see approach amidst the spinners. Finnish Group Stora Enso suddenly announced shutdown at its wood pulp activities and pulled out from the Chinese Viscose market, ending its sales to the producers in the Xinjiang province. Whereas in India, the domestic market remained stagnant in the first half of the quarter due to the restricted activities as the second wave of COVID impacted the market activities. Demand remained muted due to hovering uncertainties in the Asian textile sector with strong anticipation that the Chinese VFY export volumes would likely return to the pre-pandemic levels if the control of COVID-19 pandemic in several countries takes place sooner.
Europe
During the second quarter of 2021, the VFY market in the European region observed raw material shortages due to hiked cost of wood pulp. The mass vaccination drives induced the public movement during the second half of the quarter. As a ripple effect, the market activities picked up pace and the offtakes from the textile industries surged during the second quarter of 2021. Although the production level remained balanced at several manufacturing facilities against the rising demand, surging operational costs resulted into significant hike in the Viscose Filament Yarn (VFY) prices offered by the regional producers.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, the North American VFY market was significantly affected, as supplies remained affected due to low inventories of the crucial feedstock. Several factories in the US Gulf region of the United States were forced to shut down production due to the severe freeze weather conditions despite strong demand from the downstream textile industries. By March-end, raw material pulp showed spike amid continued tightness in the supply as the industry showed recovery from the operational cuts impended since the mid of February. The supply-demand gap widened, resulting in an upward push to the VFY prices in the North American region.
Asia-Pacific (APAC)
Due to environmental protection inspections in China during the first quarter of 2021, the restricted supply of cotton linters followed by the plant’s turnaround during the spring festival led to affected supplies of VFY in Asia pacific market. Since the middle of the Q4 2020, the Asian VSF market had begun to recover from the pandemic induced slowdown, which proportionally supported the VFY (Rayon) market throughout the region. Grasim industries improved the production of VFY as the demand is India reached to pre-COVID levels in Q1 2021. Overall demand of the Asian market surged as the offtakes improved from the Indian textile industry. The prices of VFY remained stable in around USD 4950 per tonne levels in India during March.
Europe
In the first quarter of 2021, the European VFY market saw restricted supplies due to a scarcity of feedstock VSF, limited imports, and transportation delays in the northwest European region due to adverse weather conditions which hampered the production rates in several major facilities across the NW European region. The impeding ban on single use plastic boosted VFY demand in the European market, prompted by improved arbitrage with the Asian market and better offtakes from the textile sector in the peak season.
For the Quarter Ending December 2020
Asia
With an appreciable rebound in the textile sector in November, a sharp pickup due to festive demand across several Asian economies bolstered the market sentiments across various textiles units including Viscose Filament Yarn (VFY). Price of VFY (Bright 40D) was averaged at USD 4908 per MT in India, showcasing a significant revival in comparison to the previous quarter. Since several domestic manufacturers reported that the Indian market remained flooded with heavy VFY imports from neighboring countries like China, Indonesia and Vietnam, the country’s commerce ministry announced initiation of anti-dumping probe to check on the imports from these countries in the final week of December. Although the proposed dumping duty is likely to extend the profit margins of domestic manufacturers, but it might also squeeze the intakes for garners and weavers as the prices of domestically produced viscose yarn are already very high. In addition, anti-China movement in U.S. has embraced a shift in the outsourcing of textiles from China to India.
North America
Supply of Viscose Filament Yarn (VFY) from overseas considerably increased with respect to the previous quarters owing to a considerable rebound in the retail sale of textiles. Increased demand for home textile products following the shift to work from home has caused a prominent increment in consumption for various textile products. Suppliers were heard catering imports from more than two Asian countries to restrain from the risk of any shortage amidst the pandemic uncertainties. In December end, the US government along with several private officials signed an MoU to assist Asia Pacific garment workers severely hit by Covid-19 hardships.
Europe
Recovery in the European Viscose Filament Yarn (VFY) market was severely hit towards the end of Q4 by the sudden buzz of new trace of coronavirus in UK. Partial lockdown implied in several parts of Europe majorly UK has caused a force measure in various garments stores causing the slowdown in the sales of garments in the later half of the quarter. Furthermore, the Brexit agreement signed between European Union and UK has also concerned several suppliers over their export margins in the coming years. Traders anticipate that this deal aiming to push UK as an independent trade identity could bottleneck the investment opportunities and supply chain in the near-term.
