The Asian Viscose Filament Yarn (VFY) market performed well at the month end of April 2023. It was witnessed that the profitability of VFY improved, and demand performed well, leading to more enthusiastic production by VFY enterprises. As per the ChemAnalyst database, the VFY Bright 40F price settlement was at USD 5473/MT Ex-Surat during April, indicating a positive market trend.

VFY market at the start of the second quarter of 2023 gained momentum after the dullness throughout Q1 of 2023. This was due to the improved downstream demand from home and textiles industrial and seasonal pick-up in new orders from the clothing industry. It was also encouraging to know that the increase in the raw material Wood Pulp market has also contributed to positive market sentiments. Market participants also noted that they had reduced the operation to a marginal extent in anticipation of a dull market outlook, but the situation reversed as we entered Q2, and the market gained momentum.

Additionally, China's sales have been steady to India as China is the largest exporter of VFY to India, and Turkey, with more than half of China's VFY being exported to India. It is also encouraging to hear that the textile market outside of Asia has also been experiencing growth, which has led to an increase in export demand during April. Production rate also increased as end-use industries were witnessing huge orders as the seasonal demand for Viscose material rose.

As per ChemAnalyst Forecast, the demand for VFY is expected to pick up from downstream home textile and clothing sectors, which is likely to lead to an increase in prices for VFY in the coming months. Also, it is important to closely monitor the raw material prices, global economic conditions, and demand dynamics to understand better how the VFY market will perform in the second quarter of 2023.