The Chinese textile industry faced a rough time in 2019. This was true for cotton, polyester and viscose. Rayon yarn mills will not completely switch production but they prefer polyester/rayon blended yarn which has similar prices but cheaper costs and considerable profits compared with pure yarn. Therefore, both vortex-spun and open-end rayon yarn also saw a production shift.

Some pure spinning machines will be occupied, but they dispersed rayon yarn’s competition burden and to a certain extent maintained the stability of the operating rate of rayon yarn mills. Polyester yarn was supported by market feedback orders and the polyester market.

Rayon yarn had sales and profits advantages compared with cotton yarn. It was mainly cotton yarn mills that cut production. Polyester/cotton yarns were preferred, and the proportion of viscose flowing into them was not high. As for market demand, assuming that prices and market fluctuations of the three major feedstock remain similar this year, the situation in 2020 will be similar to that in 2019. As for viscose staple fiber, there was still a certain increase, but it was hard to give much strong support to the market. Stronger market fluctuations also require a combination of supply and demand changes.