• Key YTD moves: Polyester +21%; HW DWP +44%; China-origin DWP +43%; medium-grade VSF +36% and high-end VSF +39%.
  • Cotton market weakened w/w: Cotton linter declined 3% w/w, while refined cotton was broadly stable but under some pressure.
  • VSF market stable: Based on feedback from the yarn expo recently held in Shanghai, prices are likely to remain stable. Despite some VSF plants impacted by feedstock shortage, the VSF operating rate remains at 83% and VSF inventory days remains tight but slight uptick to at 13.0 days.  
  • DWP market quiet, for now: Sun Paper continues to produce DWP, and Hunan Juntai is still working on a conversion, planning to periodically produce paper pulp. It appears that domestic mills are likely to try raise prices further. Imports have been impacted by logistics; this has to some extent hampered new offers from being announced. Lyocell is now c. USD 1,400/t. In the context of tight DWP supply, further DWP price increases could be on the cards.

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