CITIC Securities: The viscose filament industry is expected to enter a phase of tight supply and demand, with an upward shift in price levels.

CITIC Securities' research report suggests that with continuous growth in export demand and supply nearing full capacity, the viscose filament industry is expected to enter a phase of tight supply and demand alongside rising price levels. The growth in consumption of traditional Indian garments is driving an increase in China's viscose filament exports, with the industry's export volume projected to rise by 18.2% year-on-year to 114,000 tons in 2025, and a further increase of 30.9% year-on-year in the first half of 2026. Meanwhile, the domestic industry's operating rate is expected to reach 89.8% in 2025, and semi-continuous spinning capacity may face pressures from policy elimination, environmental upgrades, and relocations. We anticipate a supply-demand gap in the industry from 2026 to 2028, with product prices showing upward elasticity. We particularly recommend leading enterprises.