Apparel Market Recovery and Financial Overview
Chinese VSF production normalized, inventories along the VSF value
chain came down to - or even below - long-term averages
Operating rates VSF China
%
90
90
85
80
75
70
70
59
65
60
Viscose chain inventories1 in China
35
Days
30
50
25
25
20
20
15
||
||
VSF
--
--
Yarn
Fabric
5-yr Ø VSF
5-yr Ø yarn
5-yr
fabric
10
50
1/22
4/22
7/22
10/22
1/23
4/23
1/22
4/22
7/22
10/22
1/23
4/23
55
59
Industry and customers are ordering again
Normalizations of operating rates indicate re-stocking
trends, pick-up in demand similar to Q1 2022
Large VSF inventories piled up during Chinese New Year
(CNY) were digested recently indicating need for re-stocking
Inventories also reduced on yarn and fabric level
Lenzing
Innovative by nature
3 May 2023 10
1) Monthly averages of physical inventory. VSF at VSF mills, rayon yarn at rayon yarn mills, rayon greige fabric at rayon greige fabric plants
SOURCE: CCFG
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