Apparel Market Recovery and Financial Overview slide image

Apparel Market Recovery and Financial Overview

After heavy swings in the previous year, fiber and pulp prices oscillated in a narrower range Fiber prices in China USD/kg, excl. VAT Viscose Cotton Polyester Dissolving hardwood pulp 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 1/20 7/20 SOURCE: CCFG; Cotlook; ICAC www.lenzing.com Wwwwwww 3 May 2023 34 Viscose ⚫ Chinese VSF market focused on domestic demand due to the disappointing performance of foreign markets and the VSF price was largely stable Operating rates in Chinese VSF industry are currently fairly high and exceeded 80 % in March Discounts spurred sales and resulted in depleting inventories sufficient for 18 days Cotton • The high price volatility as well as the stocks built up last year at high prices remain challenging for cotton buyers • Cotton like other commodities reacted strongly to external events such as interest rate hikes and the banking crisis in March that caused uncertainties in the international banking system Polyester • Price development was mostly driven by feedstock cost Dissolving hardwood pulp • New capacities and low paper pulp prices weigh on DWP prices Lenzing Innovative by nature 1/21 7/21 1/22 7/22 1/23
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