For the Quarter Ending September 2024
North America
In Q3 2024, the North American Viscose Filament Yarn (VFY) market exhibited a steady pricing trend, influenced by a favorable balance of supply and demand dynamics. Throughout the quarter, consistent demand from key sectors such as textiles and fashion supported this stability. VFY's increasing preference due to its quality and sustainability attributes further bolstered its market position.
Supply conditions played a crucial role in maintaining price steadiness. Manufacturers effectively managed production levels and maintained adequate inventories, ensuring a reliable flow of products to meet market needs. The consistent availability of raw materials, particularly dissolving pulp, also helped mitigate potential price fluctuations. Additionally, logistical efficiencies allowed for timely distribution, further reinforcing the steady pricing environment.
Despite fluctuations in global market conditions, VFY prices in North America remained stable, with only minor adjustments observed during the quarter. Overall market sentiment was positive, as both suppliers and consumers anticipated stable demand moving forward, positioning the VFY market favorably within the broader economic landscape.
APAC
In Q3 2024, the APAC region witnessed a decline in Viscose Filament Yarn (VFY) prices, primarily driven by reduced production costs linked to lower feedstock prices. A significant decrease in the cost of dissolving pulp, a vital raw material for VFY production, enabled manufacturers to adopt more competitive pricing strategies in the market. This shift allowed producers to respond effectively to changing market conditions while maintaining their margins. Throughout the quarter, demand from downstream industries, particularly the textiles and apparel sectors, remained moderate, characterized by steady consumption levels. However, this stable demand did not exert upward pressure on VFY prices, as the increased supply resulting from lower production costs outweighed any potential gains from demand. In India, the market experienced notable price fluctuations, with VFY prices declining by 5% compared to the same quarter last year. Interestingly, quarter-on-quarter prices in the Indian market rose by 1.5%. By the end of the quarter, VFY prices in India were noted at USD 4892/MT, reflecting ongoing adjustments amid prevailing market dynamics.
Europe
In Q3 2024, the EU region experienced a decline in Viscose Filament Yarn (VFY) prices, primarily driven by lower production costs resulting from reduced feedstock prices. The significant decrease in the cost of dissolving pulp allowed manufacturers to lower their prices competitively in the market. Despite these favorable production conditions, overall demand remained moderate to low, largely influenced by weak consumer sentiments across various sectors. Throughout the quarter, the sluggish demand was particularly evident in the textiles and apparel industries, where purchasing activity did not match production levels. However, by the final month of the quarter, there was a slight improvement in consumer sentiment, partially fueled by a cut in interest rates by the European Central Bank (ECB). Unfortunately, this boost in sentiment did not translate into increased VFY prices, as the market was burdened by excess inventory. As a result, the combination of low production costs and moderate demand led to a sustained decline in VFY prices, reflecting ongoing adjustments to market dynamics in the EU region.
For the Quarter Ending June 2024
North America
In Q2 2024, Viscose Filament Yarn (VFY) prices in North America exhibited a bearish trend, primarily due to diminished demand from downstream sectors. The textile industry faced significant challenges, leading to reduced consumption of the Viscose filament yarn.
Textile mills, in particular, experienced severe impacts as the U.S. manufacturing sector saw a loss of approximately 8,000 jobs in June, according to the Bureau of Labor Statistics (BLS). A survey of purchasing and supply executives across various sectors, including textile mills, apparel, and leather, highlighted a contraction in manufacturing activity by the end of the second quarter. This downturn was marked by a decrease in new orders, production, and employment, reflecting a broader slowdown in manufacturing.
Furthermore, the Office of Textiles and Apparel (OTEXA) reported that U.S. imports of apparel dropped to 1.963 million square meter equivalents (SME) in May 2024, a decline of 1.3% compared to May 2023. This reduction in imports mirrored the weakened demand within the U.S. market, affecting the VFY sector.
In summary, the Viscose Filament Yarn market in North America remained bearish during Q2 2024. The combination of low downstream demand, reduced manufacturing activity, and a decrease in apparel imports contributed to the sustained decline in VFY prices throughout the quarter.
APAC
In Q2 2024, the APAC region saw a significant increase in Viscose Filament Yarn (VFY) prices, with India experiencing the most pronounced fluctuations. Several factors contributed to this upward trend. Strong demand from both domestic and international markets, combined with disruptions in supply chains, led to tighter supply conditions, which drove prices higher. Additionally, rising production costs, particularly due to increased wood pulp prices, further fueled the surge in VFY prices. Seasonal factors also played a role, with heightened demand during the festive season adding to the price increases.
In India, VFY prices consistently rose throughout the quarter, reflecting a positive pricing environment. The interplay of high demand, supply constraints, and increased production costs resulted in a 3% price increase compared to the previous quarter. A notable price difference of 3% between the first and second halves of the quarter underscored the strengthening price momentum. By the end of the quarter, VFY was priced at USD 5074/MT Ex-Surat, indicating a bullish market sentiment and a strengthening pricing environment for VFY in India.
Europe
In Q2 2024, the Viscose Filament Yarn (VFY) market in Europe experienced a continuous upward trend, marked by substantial price increases due to several key factors. The primary driver of this trend was the significant rise in feedstock costs, especially wood pulp, which surged due to increased demand from the paper manufacturing industry. This escalation in feedstock prices led to higher production costs for VFY manufacturers, who then raised their prices to sustain profitability. Additionally, logistical issues and rising freight charges exacerbated the situation, further inflating overall costs and contributing to higher VFY prices.
Germany, a key market within the region, saw the most notable price fluctuations this quarter. The German market experienced strong positive sentiment, fueled by robust demand from the textile sector and a well-balanced supply-demand dynamic. Seasonal factors also influenced the market, with increased orders for sports textiles and related products aligning with major events like the 2024 European Football Cup, which boosted market activity. Overall, Q2 2024 presented a distinctly positive pricing environment in Germany, driven by increasing input costs, logistical challenges, and strong demand dynamics.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Viscose Filament Yarn (VFY) market in North America showed a mixed pricing pattern, characterized by fluctuations where certain months witnessed increases while others saw decreases. Several factors contributed to these price shifts.
A significant factor affecting VFY prices was the surge in import costs, driven by the Red Sea crisis. This situation led to a bullish trend in prices. Additionally, rising interest rates and manpower wages impacted VFY production costs, further fueling expectations of price hikes. Despite moderate demand from downstream industries, high freight charges added to the upward pressure on prices. Moreover, reduced demand from downstream industries in Europe led to a decrease in VFY offtake from the apparel and textile sectors.
Overall, the pricing environment for VFY in the North America region during Q1 2024 showed volatility. Price fluctuations were influenced by factors such as import costs, supply-demand dynamics, and downstream industry demand. In summary, prices experienced a decrease of more than 1% compared to the previous quarter and a decline of over 3% compared to the same quarter of the previous year.
APAC
The pricing landscape for Viscose Filament Yarn (VFY) in the APAC region during Q1 2024 displayed a degree of volatility, marked by fluctuations observed across different regions. In the initial and final months of the quarter, prices saw a decline, while there was an improvement noted in the middle of the quarter. This downward trend can be attributed to reduced demand from downstream industries such as embroidery, georgette, and home furnishing manufacturing items. Additionally, the influx of inexpensive imports from the Chinese market further contributed to the price decrease. Conversely, the sudden surge in prices during the middle of the quarter was fueled by heightened demand from downstream textile industries amid tight material availability. Globally, there was inflation, prompting traders to seek procurement from the Indian market, thereby exerting pressure on limited inventories. Overall, the pricing scenario for VFY in India during Q1 2024 exhibited a mixed outlook, with both positive and negative price changes observed in the APAC region. Market fluctuations were influenced by factors such as downstream industry demand, raw material availability, and international procurement pressures. In India, VFY prices remained lower by approximately 3% in Q1 2024 compared to the previous quarter, with a decrease of over 10% compared to the same quarter of the previous year.
Europe
During the first quarter of 2024, the European market for Viscose Filament Yarn (VFY) experienced a combination of pricing trends, initially witnessing a decline followed by stabilization, and a slight upward trend towards the end of the period. Various factors influenced the pricing dynamics of VFY in Europe. Despite moderate to low availability, manufacturers were able to maintain smooth operations. However, the market faced challenges due to high chemical prices and increased marine freight costs, which affected the supply-demand balance. On the demand side, there was a moderate to high level of demand for VFY.
In Germany, VFY prices stabilized in the middle of the quarter after a notable decline at the beginning. This stabilization was primarily attributed to favorable production costs, driven by a decrease in raw material prices. However, there were indications of a potential rebound in the subsequent months. Overall, the pricing environment for VFY in Europe remained fluctuating, with supply and demand factors playing pivotal roles in influencing prices. In summary, VFY prices in the German market increased by 1% in the first quarter of 2024 compared to the previous quarter, while experiencing an approximately 6% decrease compared to the same quarter of the previous year.
For the Quarter Ending December 2023
North America
Throughout the fourth quarter of 2023, the Viscose Filament Yarn (VFY) market in North America witnessed a consistent downward trend. The US market experienced marginal fluctuations with a confirmed downtrend, largely attributed to stable supply dynamics.
Economic activity in the US remained subdued in November, contributing to the overall decline. However, smooth supply chain operations without significant disruptions mitigated cost pressures on VFY prices. Despite a previous month's price increase due to rising production costs, the market's narrow balance between demand and supply supported the overall downward trajectory. Downstream manufacturers faced a slight decline in demand, prompting VFY manufacturers to proactively reduce prices to manage inventory levels and stimulate market demand. This strategic move, aimed at managing inventory and stimulating market demand, had a notable impact on the overall dynamics of the US VFY market.
In December 2023, the Manufacturing Purchasing Managers' Index (PMI) for the United States was adjusted downward. The decline in output resumed during this period, and the downturn in new orders accelerated, reflecting weaknesses in both domestic and external demand conditions. Meanwhile, firms responded to these challenges by adjusting down their input buying and hiring activity in line with the observed downturn in the manufacturing sector.
APAC
In the Asia-Pacific (APAC) region during the first half of the fourth quarter of 2023, the Viscose Filament Yarn (VFY) market faced constraints in production capacity, coupled with a slowdown in downstream industries and a slight decrease in start-up load. Despite a mild improvement in the Purchasing Managers' Index (PMI), the market witnessed a drop in VFY prices in the second half, influenced by persistent demand weaknesses in the manufacturing sector. Raw material dynamics, primarily derived from wood pulp or plant-based sources, played a pivotal role in shaping pricing trends. VFY manufacturers responded to surplus inventory challenges by aggressively reducing prices to stimulate new orders and alleviate stock accumulation. Despite challenges, a slight uptick in the China General Manufacturing PMI in December 2023 suggested a marginal improvement in the manufacturing sector, potentially indicating a more optimistic outlook. The combination of weak demand and excess supply has resulted in manufacturers sitting on bloated inventories. This pressure to clear stocks incentivizes them to offer deeper discounts, adding fuel to the price decline.
Europe
In the European Viscose Filament Yarn (VFY) market during the fourth quarter of 2023, prices experienced a marginal appreciation in the first half. This was driven by a 1.1% decline in industrial chemical production across the Eurozone and increased demand from the downstream textile industry, particularly as winter apparel demand grew. Improved purchasing sentiments, especially with the approaching festive season, further strengthened demand. This contrasted with economic conditions in Germany, where export orders declined, and GDP was expected to contract, indicating recessionary conditions. In the second half of the quarter, the VFY market in Germany experienced a decline due to demand weakness in the manufacturing sector. Raw material dynamics, sourced primarily from wood pulp or plant-based origins, played a significant role in shaping pricing trends. he revised Manufacturing Purchasing Managers' Index (PMI) for Germany in December 2023 was slightly elevated up from the initial estimate. Despite persisting within the contraction zone, there are indications that the manufacturing sector's most challenging period of decline has passed. Meanwhile, in response to competitive pressures and diminished input costs, manufacturers maintained a trend of lowering factory gate charges on the pricing front.
