CSC Financial: Regenerated cellulose staple fiber supply and demand resonate; the industry is expected to enter a new recovery cycle.

CSC Financial pointed out that on the supply side, the viscose staple fiber industry structure is highly concentrated with limited new capacity in the future. Since August 2025, the operating rate of China's domestic viscose staple fiber industry has remained at a high level of above 85%, while the industry has entered a destocking cycle, with current inventory already close to the lowest level since 2020. On the demand side, global cotton supply expectations are tight, and the cotton-viscose staple fiber price spread has widened since the beginning of this year, enhancing the cost-effectiveness of viscose staple fiber and driving substitution demand. Meanwhile, downstream vortex spinning and non-woven fabrics are expected to support medium- to long-term demand for viscose staple fiber. With supply and demand resonating, viscose staple fiber is expected to enter a new recovery cycle.