Viscose Fiber Prices Continued To Rise &Nbsp; Industry Situation Is Excellent.

Since 2009,

Viscose is cellulose fiber produced from cotton or other natural fibers.

In the 12 main textile fibers, the moisture content of viscose is most consistent with the physiological requirements of human skin. It has the characteristics of smooth, cool, breathable, antistatic, dyed and flowery. It also surpasses cotton fiber in draping, dyeing and functional aspects. It satisfies people's pursuit of natural and comfortable consumption upgrading for textiles.

After hundreds of years of development, viscose fibers have become one of the most important types of man-made textile fibers.

Because of continuous improvement of production technology and equipment, fiber properties have been further improved, and environmental protection problems are being solved step by step. Viscose fiber will still play a very important role in chemical fibers.

Viscose fiber can increase rapidly.

In China,

After 2004, a large number of new production capacity made viscose fiber prices decline, so that the industry boom quickly entered a downward cycle.

In the second half of 2005, the current turning point of viscose fiber appeared, and by the beginning of 2006, the industry has entered a stage of improvement.

Since then, the price of viscose filament has increased under the stimulation of limited production and insured price, and the price of viscose staple fiber has also been rising continuously. Viscose staple fiber industry has entered the growth stage, and viscose staple fiber production has been increasing.

In recent years, the output growth is between 15%-25%, and the compound growth rate of 2009-2010 years is expected to be between 15%-20%.

In recent years, the domestic viscose staple fiber production capacity changes are basically consistent with the output changes, basically maintain the annual capacity of 10-20 tons of new capacity, viscose fiber business concentration significantly improved, market share gradually to the leading enterprises concentrated.

In 2006, the output of viscose staple fiber was 1 million 100 thousand tons in China, and the output of the top ten enterprises reached 720 thousand tons, accounting for 65.46%.

And viscose filament production capacity is mainly concentrated in Baoding swan, Jilin chemical fiber, Xinxiang chemical fiber and Yibin Silvia four enterprises, its market share is more than 60%.

In 2008, according to the relevant provisions of China's accession to the WTO, the export of textiles was no longer restricted, and the export of Chinese textiles resumed rapid growth momentum.

Imports remained stable and export grew rapidly, which became an important driving force for the demand of viscose fiber.

Despite the impact of the financial crisis in 2008, the boom of domestic viscose fiber industry has rebounded rapidly since 2009, and the price of viscose fibers continued to rise, especially viscose staple fibers.

According to the statistics of National Bureau of statistics and customs, viscose fiber (including viscose fiber) in China in 1-12 2009

Some agencies predict that the growth rate of viscose fiber output will reach 15%-20% in 2009-2010 years.

However, domestic viscose fiber production is facing bottlenecks in raw material supply, and large quantities of pulp must be imported to meet the demand.

In 2006, the output of chemical pulp was only 901 thousand tons, while the production of viscose staple only needed 114-121 tons of chemical pulp. There was a huge supply gap.

Development of viscose fiber

The development of viscose fiber industry has provided a large number of products with high quality and low price for the society, which has made great contributions to the national finance, economy, export and employment.

In 2009, China's economy continued to grow rapidly, and its annual growth rate reached 8.7%. With the sustained and stable development of the economy, the viscose staple market ended the situation which has continued to decline since 2008, ushering in a new round of prosperity.

Especially since the two quarter, viscose fiber prices continued to rise, of which viscose staple fiber performance is particularly evident.

There are two main reasons for the soaring price of viscose staple fiber: first, the recovery of the textile industry, the strong demand for downstream and the stronger domestic demand. The rapid recovery of the textile industry will promote the consumption of viscose fiber products, and the price of viscose fiber will be supported.

On the other hand, the price of fiber products can be greatly increased, which will have a stimulating effect on the price of viscose fiber.

Cotton planting area decreased by 12% in 2009/2010, making cotton output more than 10% lower than last year. It is a foregone conclusion. In 2009, domestic cotton prices rose sharply due to reduced supply, and cotton prices were expected to rise steadily.

Judging from the current situation, viscose staple fiber prices are expected to continue to rise, the industry will maintain a high degree of vitality.

In 2009, the number of yarn ingots continued to increase rapidly, especially in some jet spinning and vortex spinning, which increased the demand for viscose staple fiber.

According to the National Bureau of statistics, in 2009, the total yarn production in China increased to 24 million 56 thousand tons, an increase of 12.7% over the same period last year. The increase in yarn production has led to the first recovery of the viscose industry.

China is the first largest producer of viscose. At present, its short fiber production capacity is about 1 million 450 thousand tons, filament 250 thousand tons, capacity and output account for more than half of the world's total. In domestic manufacturers, the staple production capacity of the top 3 manufacturers in the industry accounts for about 50% of the industry's capacity, and the concentration is very high.

Compared with the downstream textile industry, domestic viscose enterprises have certain pricing power, but because of the low technical and financial barriers, the pricing power is not prominent.

Listed companies, Shandong Hailong, Jilin chemical fiber, Xinxiang chemical fiber and Nanjing chemical fiber viscose staple fiber production capacity reached 270 thousand tons, 240 thousand tons, 65 thousand tons, 55 thousand tons and 30 thousand tons respectively, accounting for 18.6%, 16.5%, 4.5%, 3.8% and 2.1% respectively. Shandong Hailong, Jilin chemical fiber and Xinxiang chemical fiber also have viscose filament production capacity.

At present, because of the high price of raw materials, the cost of viscose production is high, and the price of viscose fiber is blocked, the operation of some viscose enterprises has been affected.

With the arrival of the second season of textile peak season and the increase of international cotton prices, the competitive advantage of Southeast Asia will be weakened, the order will be pferred to China, and the starting rate of weaving enterprises will be improved, which will be conducive to the increase of viscose fiber prices.

It can be predicted that the viscose industry will maintain a stable and good development trend for a long time in the future. As a representative enterprise of viscose industry, the viscose fiber listed company will also usher in a better development prospect under the impetus of the industry.

Industry profitability and forecast

Viscose staple fiber raw material prices have risen significantly in recent years, industry profitability will be divided.

The main raw materials of viscose staple are cotton lint and cotton pulp. Since September 2009, the price of cotton lint and cotton pulp has increased significantly, which has a negative impact on the industry's profitability.

Shandong Hailong and Ao Yang technology two leading enterprises have their own pulp production line, which is less affected by the price rise of raw materials, of which Shandong Hailong pulp production capacity is 280 thousand tons, basically achieving self-sufficiency; Australia ocean technology has pulp production capacity of 80 thousand tons, and self-sufficiency rate is lower than that of Shandong Hailong.

As the leader in the industry, Shandong Hailong also has the advantage of technology. At present, it has quantified the production of high humidity modulus fiber, flame retardant fiber and other high-end products.

The price of these products is much higher than that of ordinary viscose fibers, and the gross profit rate is higher.

In addition, Shandong Hailong is planning a non-public offering. The net proceeds will not exceed 500 million yuan. It will be used to produce 45 thousand tons of differentiated, functional jute pulp and an annual output of 30 thousand tons of high whiteness, fine denier and differentiated viscose staple fibers, so as to further consolidate the dominant position of the industry.

In 2009, except for Shandong Hailong, the other six companies rose little.

Baoding Swan had the lowest gross interest rate of 8.28% in 2009, the largest increase of 26.81 percentage points over the same period.

The Hailong gross profit margin of Shandong was the most stable, with an increase of only 6.66 percentage points in 2009.

The rise in gross margin reflects the further improvement in the profitability of the chemical fiber business, and the gross margin of the viscose fiber listed companies has risen all the way, with an average increase of 13.63 percentage points.

In 2010, global cotton supply and demand imbalance, cotton supply in short supply, cotton prices also rose, and viscose staple fiber as one of the main raw materials of cotton spinning industry, the price is also rising.

Since the beginning of this year, the order of enterprises has continued to grow, and the growth of downstream demand has played a significant role in promoting the viscose industry.

Recently, the Ministry of industry and Commerce issued the "admittance condition of viscose fiber industry" announcement, which provides an important guarantee for promoting the adjustment and upgrading of viscose fiber industrial structure, preventing low-level redundant construction, reducing waste of resources, and achieving sustainable and healthy development.

The condition of admission is clearly put forward. The difference rate of the viscose fiber project is more than 30%, and the new production capacity needs new supporting materials, which will promote the development of new raw materials.

At present, Shandong Hailong uses jute fiber developed by jute in the listed company, and the bamboo fiber developed by Jilin chemical fiber has been welcomed by the market. Xinxiang chemical fiber also produces bamboo fiber.

The development of viscose fiber industry will face the fundamental pformation of growth mode. Enterprises should develop towards technology, environmental protection and efficiency, with particular emphasis on the research and development of differentiated viscose fiber new products, and the industrialization of new and high technology achievements.

In the medium to long term, the growth of population and the process of urbanization will promote the development of viscose fiber.

At present, the main difficulties facing viscose fiber industry are tight supply of raw materials, rising prices, excessive capacity growth and intensified competition from conventional varieties.

Continuous development of new raw materials and improvement of fiber differential rate are important issues facing viscose enterprises.

Because the development of natural fiber is limited by natural conditions, cultivated land conditions, technological innovation cycle and other factors, synthetic fiber is also constrained by energy, cost and pollution factors. Viscose fiber has the characteristics of natural and natural return. It will be the main direction of the future development of textile fiber.