Could spunlace nonwovens reverse losses in H2 of 2025?

Spunlace non-woven fabric prices saw minor fluctuations in the first quarter of 2025, but saw a decline at the end of Mar when the major manufacturer in Xinjiang lowered the price. In the second quarter, amid weakening raw materials and demand, prices continued to decline slightly. The price of 100% viscose cross-lapping spunlace nonwovens dropped from 17,750yuan/mt at the beginning of Apr to 17,500yuan/mt by the end of Jun, and that of nonwovens-grade VSF fell from 13,780yuan/mt to 13,000yuan/mt.

Entering Jul, the non-woven baric market further weakened, with slower transactions and evident signs of slack season. Although low prices did not emerge in Xinjiang, prices in East China kept slipping in East China by lacking orders. By the end of Jul, the price of 100% viscose cross-lapping nonwovens has dropped below 17,300yuan/mt. The trading activity was still low when downstream buyers mainly purchased raw materials to meet the minimal requirements.

The capacity of spunlace nonwovens will continue to increase in 2025. As domestic and international habits for the use of dry and wet wipes develop, the demand for spunlace non-woven fabric is expected to increase, with the increase expected in personal care and household wiping applications.

The U.S. has initiated a wave of global tariff increases, significantly increasing instability in export markets, particularly for volumes exported to the U.S. Nevertheless, exports to the United States in Jun showed a certain recovery. According to feedback from some exporters, the United States will bear most or even all of the tariffs. Looking at the growth in the non-woven fabric export market in recent years, there has been a divergent growth pattern. This opens up more markets for non-woven fabric exports. Therefore, even if the volume exported to the U.S. rapidly declines, it is unlikely to significantly impact overall export volumes. In the first half of 2025, the total export volume increased by 12% year on year to 220.066kt.

The output of spunlace nonwovens will still increase when both domestic and foreign demand grow, but the growth rate of domestic demand may be constrained by the ability of residents' income growth. The foreign demand growth may also decline restrained by the trade environment. The price is expected to follow the fluctuations in raw material costs, and losses are expected to occur most of the time.