For the Quarter Ending June 2025
North America
• Viscose Staple Fiber (VSF) prices in the North American market witnessed a bearish trend during Q2 2025, especially in United States where it declined by 4.7%, settling at USD 1,860/MT CFR Texas in June.
• The quarter began with modest price gains in April, supported by constrained imports due to new U.S. tariff policies and supply-side recalibrations by exporters. Domestic production slowed amid weak order inflows and macroeconomic uncertainty.
• May marked a shift to bearish sentiment, as persistent inventory overhang, weak downstream demand from textiles and nonwovens, and cautious procurement strategies weighed on prices.
• June saw mixed trends. Early stability was maintained by firm feedstock costs and steady operating rates, but rising freight charges and a temporary tariff suspension briefly pushed prices up. This was offset by weak consumer sentiment and limited offtake, causing prices to decline again by month-end.
• Downstream sectors, particularly textiles and apparel, remained subdued across the quarter, despite a YoY rise in U.S. apparel imports through April. Retail conservatism and cautious restocking led to suppressed transactional activity.
Why did the price of VSF change in July 2025 in the North American region?
• In July 2025, the Viscose Staple Fibre (VSF) Price Index in the U.S. market experienced mixed movement, with an initial decline followed by a recovery later in the month.
• The VSF Market Fundamentals shifted mid-month, as domestic inventory tightened and global production output moderated, prompting a rebound in import prices and pushing up landed costs.
• The VSF Price Forecast suggests inflationary undertones may persist, with seasonal procurement activity and a rise in the U.S. Import Price Index continuing to support price recovery despite underlying demand stagnation.
APAC
• Viscose Staple Fiber (VSF) prices in the APAC market witnessed a bearish trend during Q2 2025 especially in South Korea where it fell by 3.4%, settling at USD 1680/MT CFR Busan in June.
• Prices held steady in April amid balanced supply and modest demand, briefly rising due to restocking and higher freight costs.
• A bearish trend emerged in May as downstream demand weakened, inventories built up, and regional competition intensified.
• June saw price stabilization supported by steady imports, stable production, and flat dissolving pulp costs, despite soft end-use consumption.
• Overall, cautious procurement, weak textile demand, and macroeconomic pressures drove the quarterly price decline.
Why did the price of VSF not change in July 2025 in the APAC region?
• In July 2025, the Viscose Staple Fibre (VSF) Price Index in the region remained broadly stable, supported by consistent import prices from key manufacturing hubs and adequate regional product availability.
• The VSF Production Cost Trend was mixed, with stable caustic soda prices and downward pressure from dissolved pulp easing overall input costs, while supply chain logistics faced no major disruptions.
EUROPE
• Viscose Staple Fiber (VSF) prices in the North American market witnessed a bearish trend during Q2 2025, especially in Germany where prices declined by 2.1% and settling at USD 2,368/MT FOB Hamburg in June.
• Price stability in April gave way to bearish sentiment by late month, as elevated inventories, sustained Asian imports, and subdued demand exerted downward pressure.
• May saw a modest recovery driven by tightened import availability and marginal restocking from textile and blended yarn segments.
• June prices stabilized amid consistent production, steady feedstock costs, and normalized freight conditions, with minor gains in the final weeks as converters restocked ahead of summer demand.
• Downstream demand from textiles and technical applications remained soft but improved slightly by late Q2, supported by export momentum toward the U.S. and cautious optimism in the apparel segment.
Why did the price of VSF change in July 2025 in the European region?
• In July 2025, the Viscose Staple Fibre (VSF) Price Index in the European region rose, driven by tight supply conditions and seasonal demand cues.
• The VSF Supply Chain Trend was impacted by cautious production strategies and logistical inefficiencies at key ports, which disrupted material flow and constrained availability.
For the Quarter Ending March 2025
North America
In Q1 2025, the North American Viscose Staple Fiber (VSF) market exhibited an overall bearish price trend, shaped by a progression from January’s bullishness to March’s sustained weakness. In January, VSF prices rose notably, supported by strong demand from downstream sectors like textiles and home furnishings, as well as by higher import costs. Concerns over a potential East Coast port strike prompted exporters to front-load shipments, pushing freight rates higher and increasing landed costs.
In the mid quarter, the market transitioned to a stable phase. Ample inventories and steady imports, even amid the Spring Festival disruptions in Asia, helped maintain supply levels. While domestic production faced cold-weather challenges, feedstock costs remained stable. Demand from the textile and clothing sectors was moderate yet resilient, buffered by a strong labor market. Buyers stockpiled in anticipation of regulatory changes, limiting any significant price swings.
By March, however, prices trended downward, falling to USD 1950/MT, especially in the US market. Despite robust inventories and continued imports, the market faced weak consumer sentiment and subdued textile demand. Easing freight rates, softening import costs, and tariff-related uncertainties further dampened buying interest.
Europe
The European VSF market demonstrated a bullish trajectory during Q1 2025, with prices surging in January and February before witnessing a slight decline in March. In January, prices rose sharply, driven by robust post-holiday demand from the downstream textile sector and aggressive restocking activity by manufacturers in Germany. Limited inventory heightened overseas inquiries and persistent logistical constraints—such as vessel delays due to port congestion and labor shortages—tightened regional supply. In February, the upward trend persisted early in the month, supported by consistent procurement from textile, nonwoven, and automotive sectors. While weather disruptions and container delays slightly pressured supply chains, VSF availability remained sufficient. In the last month of Q1, the bullish trend reversed modestly as oversupply, weak global textile exports, and cautious purchasing behavior pressured prices downward. Despite low freight costs and stable production inputs, subdued downstream demand and labor strikes at major ports intensified logistical challenges, contributing to a cumulative price change. In Germany prices fell to USD 2,420/MT FOB Hamburg by late March, signaling short-term bearish sentiment amid otherwise strong quarterly performance.
APAC
In Q1 2025, the APAC Viscose Staple Fiber (VSF) market exhibited a mixed but overall bearish price trend, marked by an upward trajectory in January and February followed by a notable downturn in March. In the early months of the quarter, prices rose steadily due to strong stocking activity and firm downstream demand, particularly in the textiles sectors. Market witnessed increased buyer activity after the New Year, amid rising feedstock costs. The bullish momentum continued into early February as manufacturers resumed post-holiday production slowly, ensuring consistent VSF supply without oversupply. Meanwhile, downstream marketers also maintained cautious procurement strategies, preventing overstocking. In the last month of Q1, bearish sentiment prevailed across the Asian Pacific market, largely mirroring the South Korean scenario. With ample inventory, subdued downstream demand, cautious cash flow strategies, and reduced logistics costs, prices declined further. Despite stable import costs and rising auxiliary chemical prices, weak procurement and moderate textile activity suppressed recovery, with prices reaching USD 1740/MT by quarter-end.
For the Quarter Ending December 2024
North America
The North American Viscose Staple Fiber (VSF) market experienced a declining trend throughout Q4 2024, primarily driven by a combination of weak demand, economic uncertainty, and external market factors. Early in the quarter, the U.S. VSF market saw a decline, largely due to subdued demand from the apparel sector, which struggled with inflationary pressures and shifting consumer spending patterns. These factors, coupled with steady import prices from overseas markets, kept price movements muted.
Moving into the mid part of Q4, the U.S. VSF market showed a steadier trend, with marginal fluctuations in prices. A slight upward adjustment was observed, attributed to rising import costs and tightening global supply conditions. Despite this, domestic availability of VSF remained stable, and demand from downstream sectors, particularly textiles, remained moderate, preventing any significant price surges.
In the latter part of Q4, the market turned bearish again, with weak demand and an influx of low-priced imports, especially from the Asian region. Sluggish procurement activity, high inventory levels, and a lack of robust demand from the textile sector contributed to the overall negative market sentiment. The U.S. market experienced the most notable fluctuations, with a price decline of 5.2% during the quarter, reflecting these ongoing challenges.
Europe
Throughout Q4 2024, the European Viscose Staple Fiber (VSF) market experienced a persistent declining trend in prices. In the early part of the quarter, prices fell due to low production costs, high inventory levels, and weak demand, particularly in sectors like paper, further exacerbated by sluggish export markets. Despite favorable energy prices and low inflation, supply remained ample, while demand was muted, pushing prices lower. Mid-Q4 saw a continuation of this downward trend, driven by reduced demand from key industries, such as textiles and apparel, and rising inflation, which dampened market sentiment. The cautious economic environment, evolving consumer spending patterns, and stable supply conditions further hindered any upward price movements, with inventory management practices unable to offset weak demand. In the final part of Q4, weak demand from the textile sector, combined with rising inflation and logistical challenges, kept prices under pressure. Although production costs remained low and supply abundant, reduced purchasing activity and economic uncertainty limited any price increases. The German market experienced the most significant fluctuations, with a price decline of 12% during the quarter, underscoring the challenges faced by the region.
APAC
Throughout Q4 2024, the Viscose Staple Fiber (VSF) market in the Asia-Pacific region experienced a consistent downward trend in prices. Early in the quarter, China’s VSF market faced a decline due to weak demand and an oversupply situation, despite the usual peak season. Downstream yarn manufacturers were hesitant to place orders, leading to reduced purchasing activity. Although there were expectations of recovery, improvements in demand remained sluggish. Mid-Q4 saw the market continue to weaken, driven by weak downstream demand and an oversupply of VSF. Logistic disruptions and a slowing textile sector further hindered market conditions, while production costs remained low, keeping pressure on prices. Although some improvement in overseas demand was noted, overall market sentiment remained cautious, sustaining the declining trend. By the end of Q4, the market remained subdued, with weak demand and limited overseas orders. The off-season in the textile industry, coupled with high inventory levels, led to continued price declines. Destocking activity further compounded market fragility, contributing to a 4.4% drop in prices, with the VSF price in China settling at USD 1713/MT FOB Shanghai.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Viscose Staple Fibre (VSF) market experienced a notable increase in prices, driven by a confluence of interrelated factors. A significant surge in downstream demand played a pivotal role in this upward trend. Consequently, this increased demand led to tighter export supplies, further contributing to a modest rise in VSF prices.
Additionally, improvements in import conditions from overseas markets supported the price momentum. The fluctuation in freight charges also had an impact, as rising transportation costs can create upward pressure on imported materials, thereby influencing domestic pricing. Within the USA, the market experienced the most pronounced price changes, reflecting an overall positive sentiment. The quarter recorded a 1.5% price increase compared to the previous quarter, indicating a strengthening market influenced by these dynamics.
Seasonality trends were evident, with a marked increase in prices between the first and second halves of the quarter, highlighting a consistently positive pricing environment. While prices showed a 9% decrease compared to the same quarter last year, the quarter-ending price of USD 2088/MT for VSF 1.2 D CFR Texas underscored a significant upward trajectory.
APAC
In Q3 2024, the Viscose Staple Fibre (VSF) market in the APAC region experienced an upward price trend, influenced by several significant factors shaping market dynamics. This quarter was characterized by robust supply-demand interactions, marked by tight supply conditions alongside moderate demand from downstream industries. Additionally, production costs played a crucial role in supporting this price increase. Notably, China exhibited the most substantial price fluctuations, driven by strong cost support and a rise in feedstock wood pulp prices. This quarter the market saw a 2 percent increase compared to the previous quarter, indicating a continued upward trajectory. The latter half of the quarter also experienced a notable price surge compared to the first half, reflecting sustained growth. In contrast, the market registered a -10% price change from the same period last year, suggesting a recovery from earlier downturns. By the end of the quarter, the price for VSF in China was reported at USD 1793/MT, underscoring a positive pricing environment.
Europe
During Q3 2024, the European market for Viscose Staple Fibre (VSF) exhibited a notable stability in pricing, reflecting a balanced supply-demand equilibrium crucial for the market. This stability can be attributed to several key factors, with consistent demand from the textile industry being paramount. As fashion trends and consumer preferences continued to evolve, the textile sector maintained a steady intake of VSF, which is essential for producing various fabrics. Coupled with this demand were steady supply dynamics; manufacturers effectively managed production levels to avoid surplus or shortages. Moreover, stable production costs, especially concerning essential raw materials like wood pulp, played a critical role in maintaining price equilibrium. The costs associated with sourcing and processing wood pulp remained consistent, allowing producers to plan and operate without significant price volatility. Effective inventory management practices further enhanced this stability, ensuring that suppliers could meet market needs without excessive stockpiling. In Germany, the market displayed the most significant fluctuations, with prices rising 15% compared to the same quarter last year and an 11% increase from the previous quarter in 2024. Despite these fluctuations, prices exhibited relative stability between the first and second halves of the quarter. This consistency indicates a well-regulated market environment. By the end of the quarter, the price for VSF in Germany reached USD 2638/MT.
FAQs
1. What triggered the bearish trend in APAC's VSF market in May 2025?
Sluggish textile consumption, cautious buying, and surplus stockpiles pressured prices downward despite stable upstream input costs.
2. How did freight and port conditions impact European VSF pricing in Q2?
Disruptions at the key ports limited supply flows and inflated landed costs, supporting firmer prices.
3. What led to the VSF price drop in North America during Q2 2025?
VSF prices dropped due to inventory oversupply, soft textile and nonwoven demand, and weak consumer sentiment across the quarter.
4. How did tariff changes affect North American VSF prices in Q2 2025?
Temporary tariff suspensions and policy shifts altered import dynamics, briefly lifting prices in June before weak demand caused another decline.
