The benchmark price of viscose staple fiber 1.2D settled at 14,400 CNY per ton on September 1, 2026, not only setting a new high for the year but also marking a cumulative increase of 12.5% over the past twelve months. For yarn and fabric makers that rely heavily on this fiber, the cost pressure has already hit their profit margins.
Signals Behind the Data
According to business data, the daily benchmark price of viscose staple fiber 1.2D was 14,400 CNY/ton, up 1.41% from the beginning of last month. Over the past year, the price ranged from a low of 12,800 CNY/ton to the current high of 14,400 CNY/ton, with a median of 13,600 CNY/ton and an annual average of 13,409.95 CNY/ton. The current price sits at the upper end of the yearly range and has triggered both 'two-year overbought' and 'three-year overbought' warnings, indicating a structural uptrend rather than a seasonal blip.
From the annual statistics, the price climbed 12.5% from the year's low of 12,800 CNY/ton to 14,400 CNY/ton, outpacing the average increase of other textile raw materials. This rise is driven by multiple factors: tight supply of dissolving pulp upstream, limited operating rates in the viscose industry, and a moderate recovery in downstream demand for rayon yarn and home textiles. When supply elasticity is insufficient and demand shows resilience, the price center naturally moves higher.
Cost Transmission and Procurement Strategy Adjustments
The most immediate impact of rising viscose staple fiber prices is the increase in rayon yarn production costs. For spinning mills that use 1.2D viscose staple fiber, raw material costs typically account for about 70% of total costs, meaning that for every 100 CNY/ton increase in raw material prices, yarn costs rise by approximately 70 CNY/ton. At the current high of 14,400 CNY/ton, the profit margins of yarn mills are significantly squeezed, and some small and medium-sized enterprises may face the risk of losses.
For fabric and home textile companies, the cost pressure is somewhat cushioned but the pass-through effect is becoming evident. Greige fabric prices have started to show signs of increase, and downstream buyers are shortening order cycles and reducing stockpiles to avoid the risk of price corrections. This 'buy on rising, not on falling' mentality has actually fostered a wait-and-see attitude at high price levels, with market transaction activity declining compared to the same period last month.
From a regional perspective, changes in the operating rates of major viscose staple fiber producing areas in Hebei and Shandong will directly influence future price trends. If environmental restrictions or maintenance plans further reduce supply, prices may continue to climb; conversely, if new capacity comes online or imports increase, the high price may face downward pressure. In terms of international trade, the import dependence of viscose staple fiber is relatively low, but fluctuations in dissolving pulp import prices will indirectly affect the domestic market through cost channels.