In January 2025, the global market witnessed a gradual rise in Viscose Staple Fiber (VSF) prices. This uptick follows the demand surge after the festival season in late December 2024 and early January 2025. As the demand for VSF continues to increase, its prices are further bolstered by the growing needs of the downstream textile industry, creating a strong upward trend in the global VSF market.

In the United States, VSF prices have steadily improved throughout the month. By January 17, prices had increased by 2.4%. This rise can be attributed to the growing demand from the apparel and textile manufacturing sectors, which are major consumers of VSF. Furthermore, the return of former President Trump’s policies has had a positive impact on consumer sentiment, placing additional upward pressure on VSF prices.

Trump’s new policy initiatives to revitalize the American fashion, apparel, and textile industries have significantly impacted the demand for VSF. Tax incentives for domestic manufacturers, stronger labor protections, and the creation of a $1 billion sustainable fashion fund are expected to boost production and promote sustainable manufacturing, further driving VSF demand in the U.S. market.

Additionally, the resilience of the U.S. labor market, with nonfarm payrolls rising by 256,000 in December and the unemployment rate dipping to 4.1%, signals a stable economic environment. The retail trade sector, including fashion retail, saw job gains, with fashion retail adding 23,000 positions. These gains in retail fashion have further bolstered economic confidence, contributing to an increased demand for raw materials like VSF. The stability of the U.S. apparel manufacturing import price index at 118.8 in December 2024 reflects predictable production costs and reduced inflationary pressures. This positive economic data, coupled with stable trade dynamics, has created favorable conditions for rising VSF prices in the U.S. market.

In Germany, the VSF market followed a similar pattern, with prices rising by 4.8% by January 17. This increase was observed on a weekly basis, with the market remaining optimistic about future consumption. The increase in demand has led industries to stockpile materials in anticipation of rising demand in the coming months.

In the Asia-Pacific (APAC) market, the trend continued with China experiencing a 2.1% rise in VSF prices. This increase is driven by higher demand from the textile and apparel industries, along with strong overseas demand, keeping prices under pressure. Chinese enterprises are capitalizing on the early start to the year by operating at full capacity to meet production targets and secure a competitive edge in the market.

Moreover, China’s policy support is enhancing industrial chains, facilitating market expansion into Southeast Asia, Europe, and the U.S., all of which are driving international growth for the VSF sector. Data from the National Bureau of Statistics (NBS) in China revealed that the output of clothing surged by 29.2% in December 2024, up from 28.3% in the previous month. This increase in production highlights the rise in demand for VSF and reinforces the price dynamics in the global VSF market.