• Key YTD moves: Cotton +50%; Polyester +40%; HW DWP +30%*; China-origin DWP +17%; medium-grade VSF +24%*; high-end VSF +21%* and Lyocell -8%.
  • VSF prices jumps 10% w/w, with potentially more on the cards: Market activity has improved seeing a rebound in VSF prices as spinners are active to take delivery of VSF on the back of an increasingly bullish sentiment due to worries around supply caused by energy restrictions. The run rate of Jiangsu based units resumed after production was limited, but some lines in Northeast China were shut for maintenance, so the operating rate of VSF industry stabilized around 60% from 62%. Despite this, inventory days decreased from 32.5 to 29.5 days. The VSF/DWP spread is up by 24% w/w and is now up 23% YTD. The theoretical VSF loss for Chinese producers is just in the red at-USD 37/t but is set to improve.
  • Imported hardwood DWP now USD 950/t following the National Day holiday: The DWP/pulp spread has also contracted to USD 350/t. Due to lower VSF operating rates, DWP consumption has been lower. However, with VSF prices having recovered, this remains supportive of DWP fundamentals.    

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