Viscose Staple Fiber Price Hovers at High, Supply-Demand Tensions Intensify

The benchmark price of viscose staple fiber 1.2D reached 14,200 CNY/ton on July 7, 2026, marking a one-year high and remaining flat compared to the beginning of the month. This price level represents an 11% increase from the year's low of 12,800 CNY/ton, signaling a sustained high-cost environment for the textile supply chain. However, the ability of downstream sectors to absorb this increase is increasingly questioned.

Price Peak and Cost Support

Annual price data from July 2025 to July 2026 shows an average of 13,220.05 CNY/ton and a median of 13,500 CNY/ton. The current price not only exceeds the average but also hits the highest record in the past 12 months. Two key factors underpin this high price: elevated costs of upstream dissolving pulp and a tight supply due to environmental production curbs and plant maintenance. Notably, the price has reached a 'top difference' of zero, indicating limited upward momentum and rising correction risks.

Downstream Resistance and Weak Demand

Despite high viscose prices, downstream yarn and fabric mills struggle to pass on costs. Texworld Editorial learns from major weaving clusters in Jiangsu and Hebei that yarn mills are adopting a just-in-time procurement strategy, showing low inventory appetite. Some small to medium-sized weaving enterprises have even reduced output or switched to polyester blends due to high raw material costs. This 'upstream price hike, downstream wait-and-see' pattern reflects a tepid recovery in end-consumer apparel demand, leading to inventory buildup in intermediate sectors. Industry data shows that the production-sales ratio of viscose yarn fell by 3-5 percentage points year-on-year in the first half of 2026, confirming demand weakness.

Regional Divergence in Industrial Clusters

In Xinjiang, a major viscose production base, plants maintain high operating rates due to raw material cost advantages, but inventories are also rising. In contrast, downstream weaving hubs like Shengze and Nantong are more cautious in purchasing expensive viscose due to insufficient orders. This regional divergence has led to shrinking overall market volumes, with some traders offering discounts to relieve cash flow pressures. Notably, home textile companies in Keqiao are adjusting product mixes, reducing the proportion of pure viscose fabrics in favor of polyester-viscose blends or all-polyester products to hedge against raw material cost volatility.

Practical Recommendations

For Buyers - Given the high price level, control inventory cycles and avoid stockpiling; adopt a 'small batch, multiple orders' strategy to mitigate risk. - Monitor Xinjiang plant operating rates and inventory changes; if supply loosens, prices may correct, offering opportunities for replenishment. - Strengthen coordination with downstream customers by locking in forward order prices to partially transfer cost pressure and avoid bearing raw material volatility alone.

For Exporters - When quoting export orders, lock in viscose prices within the 13,500-14,000 CNY/ton range and include price adjustment clauses to cope with fluctuations. - Track demand changes for viscose products in Southeast Asia; if overseas consumption recovers, consider increasing the export proportion of mid-to-high-end viscose fabrics. - Use futures or forward contracts for hedging against downside price risks, especially at the current high level.