Viscose staple fiber prices hit 14,200 yuan/ton in early July 2026, flat from the start of the year but at a one-year high. Behind this seemingly static number is a dramatic reshuffling of profit margins across the textile chain.
Price Plateau: Rigid Costs Meet Weak Demand
According to China Customs and industry data, over the past 12 months, the price of viscose staple fiber 1.2D ranged from 12,800 to 14,200 yuan/ton, with a median of 13,500 yuan/ton and an annual average of 13,204 yuan/ton. The current price is at the top of the range, 1,400 yuan/ton above the year's low, and has exceeded historical averages for three consecutive years.
Notably, the daily change is zero. This plateau has persisted for over a month, indicating a fragile equilibrium. Upstream raw materials like dissolving pulp and caustic soda remain high, underpinning costs, while downstream spinners and weavers are cautious, buying only as needed, which caps upside momentum.
Industry Impact: Profits Shift to Chemical Fiber Producers
High viscose prices directly benefit chemical fiber manufacturers. At the annual average of 13,204 yuan/ton, margins have improved. However, this profit gain has not passed downstream.
Spinners face a pincer movement: high raw material costs on one side, and stagnant yarn prices due to weak apparel demand on the other. Clusters in Lanxi, Zhejiang, and Changle, Fujian, report that rayon yarn price increases lag far behind fiber price gains, with some varieties even incurring losses. Weavers in Wujiang, Jiangsu, and Shaoxing, Zhejiang, see rising gray fabric inventories and tighter cash flow.
From an export perspective, expanding Southeast Asian textile capacity is substituting Chinese viscose downstream products. Although China remains the world's largest viscose staple fiber producer, the price competitiveness of its yarn and fabric exports is eroding.