- Key moves since the Chinese New Year (CNY): Cotton stable, while Polyester and high-end VSF leads fibre gains (both up 13%). Hardwood DWP up 11% vs. China-origin up 10%.
- VSF prints further gains: Trading mood for VSF remains strong following the CNY.
- VSF operating rate edges up to 80%: VSF inventory increased during the holidays. However due to a faster recovery of logistics after the Spring Festival, stockpiles reduced and VSF inventory days remains tight at 12.0 days (up from 10.5 days).
- DWP prices in China up >10% across the board: Sun Paper and Hunan Juntai operations remain stable. With VSF demand strong (better than previous years), further DWP price increases are likely as supply remains tight.
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