In February 2025, the Viscose Staple Fiber (VSF) market exhibited a mixed price trend globally. This was primarily influenced by shifting consumption patterns and fluctuating downstream market behavior, impacting overall market.

The VSF market in the US experienced price stability at the beginning of February, but the market witnessed marginal upward fluctuations in mid-month. However, by the latter half of the month, prices began to decline gradually. By the end of February 2025, VSF prices in the US had dropped by 1.9% overall.

This downward trend was largely driven by weak import prices and sufficient inventory levels in the domestic market. Data from the US Bureau of Labor Statistics revealed that the import price index for textile mills fell by 0.8% in January 2025, reaching 101.5 from 102.3 in December 2024. Additionally, apparel prices in January declined by 1.4%, despite an overall 0.5% increase in the Consumer Price Index (CPI). These factors collectively pressured VSF prices in the US market.

Moreover, demand from the textile and apparel sector remained limited, while supply levels were adequate, further exerting downward pressure on VSF prices.

In Europe, the VSF market remained stable, experiencing only a marginal 0.8% decline in the week ending February 21, 2025, particularly in Germany. This price stability was supported by balanced supply-demand dynamics.

However, geopolitical developments could pose future challenges for VSF. US President Donald Trump announced plans to impose 25% tariffs on the European Union (EU), claiming that the EU had long taken advantage of the US in trade. If implemented, these tariffs could significantly impact European exports, including textiles and VSF shipments, in the coming months.

In the Asia-Pacific (APAC) market, VSF prices remained steady, with a slight 0.85% increase in mid-February due to some stocking activities. The market held firm, with businesses showing moderate confidence in future demand recovery.

The upstream raw material market remained firm, providing stable cost support for VSF production. Inventory levels were relatively low, while downstream yarn factories increased their operating rates, signaling a positive outlook for future demand.

Despite these stabilizing factors, post-holiday market activity was slow to recover, as fabric mills resumed operations at a slower pace than yarn mills. Traders remained cautious, contributing to subdued market sentiment.

As workers returned, weaving machine operations gradually picked up, with normal activity expected to resume around the festival. However, despite ample supply, downstream demand remained weak, characterized by small and scattered orders, while large bulk orders remained scarce.