• Key YTD moves: Cotton +14%; Polyester +20%; HW DWP +38%; China-origin DWP +25%; medium-grade VSF +5%; high-end VSF +6% and Lyocell -7%.
  • Led by Sateri, VSF producers tried to entice buyers by slashing prices this week: The VSF operating rate dropped to 75% and inventory days increased to 32.5. The VSF/DWP spread declined by 12% w/w and is now down 18% YTD. The theoretical VSF loss for Chinese producers widened further to -USD 265/t.
  • DWP prices stable, but downside likely from current levels: New business from VSF producers is limited as VSF price drops. DWP/pulp spread remains high at c.USD 385/t supporting DWP production over market paper pulp.  

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