Summary of Viscose Staple Fiber Industry Research Industry Overview - The viscose staple fiber industry has seen a significant increase in concentration, with the top three companies, Sidelong, Zhongtai Chemical, and Tangshan Sanyou, increasing their market share from 27% in 2014 to 72% in 2024, with Sidelong holding 37% [1][2] - The apparent consumption of viscose staple fiber in China is projected to grow from 3 million tons in 2014 to over 4.2 million tons by 2024, reflecting a compound annual growth rate (CAGR) of approximately 4% [1][8] - The total production capacity of viscose staple fiber has gradually decreased since 2022, with a reduction of about 9% expected by the end of 2024, bringing total capacity to approximately 4.82 million tons, down from a peak of 4.85 million tons [1][5] Supply-Side Dynamics - The supply-side situation is characterized by capacity contraction, strict policy controls, and market structure optimization. Since 2022, there has been no new capacity added, and the overall capacity has decreased by about 10% over the past three years [2][5] - Policies have been implemented to restrict supply-side development, including the elimination of outdated capacity (approximately 550,000 to 560,000 tons) and raising energy consumption standards [6][2] - The industry currently operates at a high utilization rate of 85%-86%, with low inventory levels, which supports price increases during the traditional peak season [1][9] Demand-Side Trends - The demand for viscose staple fiber is closely linked to the textile and apparel sector's performance. The demand structure has shifted, with the proportion of cotton blended yarn decreasing and non-woven fabric demand increasing [3][8] - By 2024, cotton blended yarn is expected to account for 55% of downstream demand, down 22% from 2015, while non-woven fabric's share is projected to rise to 18% from just 3% in 2015 [8] - The price of viscose staple fiber is expected to rise due to the correlation with cotton prices, which have been increasing as cotton inventories reach a seven-year low [4][9] Competitive Landscape - The competitive landscape has changed significantly, with the top three companies now holding over 72% of the market share. The market concentration has increased from less than 30% in 2014 to 72% in 2024 [7][2] - Other companies with production capabilities include Jilin Chemical Fiber (120,000 tons) and Nanjing Chemical Fiber (80,000 tons), but the overall market remains highly concentrated [7][11] Price Trends - Over the past 20 years, viscose staple fiber has experienced four major price increases driven by various factors, including market acceptance, demand growth, and policy changes [10] Key Companies - Major companies in the viscose staple fiber sector include Sanyou Chemical, Zhongtai Chemical, Jilin Chemical Fiber, and Nanjing Chemical Fiber, with Sanyou Chemical having the largest external sales at approximately 820,000 tons [11]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the viscose staple fiber industry, particularly in China, highlighting recent market dynamics and price changes related to viscose yarn and fabric [2][4]. Core Insights and Arguments - Recent price increases in the domestic viscose staple fiber market are attributed to a surge in orders from India and Pakistan, particularly for viscose yarn and fabric, leading to a price rise from 15,100-15,400 RMB to approximately 15,800-16,000 RMB [2][3]. - The inventory levels of yarn manufacturers in Jiangsu and Zhejiang provinces are decreasing, indicating an improvement in the supply-demand relationship within the industry [2]. - Major producers, such as Tangshan Sanyou and Shandong Yamei, are responding to market demand by completing export orders and resuming production, respectively, which reflects a positive market response [2][4]. - There is a noticeable upward trend in orders from downstream enterprises, suggesting a potential for sustained demand growth in the viscose staple fiber sector [2]. Additional Important Content - The competitive pricing of viscose yarn in China is a significant factor driving the influx of overseas orders, showcasing the cost advantages of Chinese manufacturers in this segment [2][3]. - The overall market sentiment indicates a recovery, with both domestic and international demand contributing to the positive outlook for the viscose staple fiber industry [4].