- Key YTD moves: Polyester +28%; HW DWP +44%; China-origin DWP +42%; medium-grade VSF +36% and high-end VSF +39%.
- VSF prices see moderate gains: Sateri started to sign LT contracts in March. Spinners have shown less enthusiasm to chase up VSF supply on the back of lower cotton and PSF prices.
- VSF operating rate stable at 83%: VSF inventory days remains tight at 12.0 days.
- Domestic DWP up 5% w/w, while imports remain flat: Domestic market was stronger this past week with Sun Paper and Hunan Juntai still producing. Origin HW DWP price vs. import spread up 29% w/w to USD 260/t. Lyocell-grade pulp was still offered at USD 1,270/t this past week. DWP momentum likely to continue due to tight supply and rising paper pulp prices.
- Cotton linter jumps 19% w/w: This was on the back of tight supply in Shandong, Hebei and Xinjiang as well as some VSF plants substituting DWP with cotton linter pulp.
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