VFY to wait for further improvement of demand – ChinaTexnet.com
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VFY to wait for further improvement of demand

2020-09-02 08:08:29 CCFGroup

VFY market was still under pressure in Aug. China local market was dominated by bearish sentiment early this month, so traders and weaving mills showed lower enthusiasm and purchasing volume generally reduced. Besides regular production cut, the restart of Jilin Chemical Fiber needed further observation and some large and mid-sized plant was shut down, so the operating rate of VFY industry hit historic low at 60% and the output further declined.

Sales improved limited both at home and abroad and VFY plants put more efforts on production control, so the inventory growth slowed sown somehow, but still overtaking 100 days. Under the pressure of having losses, VFY plants were less eager to further cut prices and tried to keep price stabilization instead.

By late Aug, there was some improvement in end-user market and traders as well as downstream plants received more enquiries at the end of month, though the volume had not improve notably. The market activity warmed up somehow and sales got some improvement. In the meantime, export market was gradually resuming as VFY export of China totaled 3.166kt in Jul, up 116% month on month.

VFY plants are still controlling production and demand has recovered somehow, so they are predicted to keep price stabilization to wait for further increment of orders.