Scenario of viscose pulp and fiber industry
Viscose fibres account for the major alternative use for dissolved pulp, with around 2 million ton of fiber produced per annum. Cellulose acetate is an industrially-important ester of cellulose and is used in a wide range of products including cigarette filters, films and other coating materials. It is also used in molded articles (e.g. spectacle frames), as a micro- and ultra-micro filtration membrane in the pharmaceuticals sector.
Viscose
|
% by Sector
|
Staple Fibres
|
44.7
|
Filaments
|
7.8
|
Tyre Cord
|
1.4
|
Cellophane
|
4.6
|
Lyocell
|
1.0
|
Cellulose Acetate
| |
Cigarette Filters
|
16.0
|
Textile Filaments
|
6.2
|
Solid Materials
|
0.7
|
Cellulose Ether
| |
Carboxymethyl-cellulose
|
3.2
|
Non-ionising Ether
|
8.2
|
Cellulose Nitrate
|
4.9
|
Microcrystalline Cellulose
|
2.0
|
Lyocell fibres are produced from Eucalyptus and pine pulp. Both Viscose and Lyocell fibres are being marketed as environmentally-friendly alternatives to cotton and synthetic fiber production by Lenzing AG in Europe.
Capacity expansion of Dissolving Wood Pulp Industry
Producer
|
Capacity Ton
|
Sappi (S A)
|
230,000
|
Bahia (Brazil)
|
250,000
|
Tembec(Canada)
|
200,000
|
Tiger forest & Paper
|
300,000
|
In the year of 2007, the prices of VSF surged drastically. The price of VSF 1.5D increased to RMB 22500/ton from the bottom of RMB 9000/ton in last year. In the Year 2008, Bothe the governments announced the favorable macro-economic policies which are turn the market sentiment positive and may compensate the decrease in the exports. Meanwhile new capacities are going to push the production up, it is expected that in gradually it will put the supply of VSF may be surplus in the short run. Overall, VSF market comes to a stage of an adjustment in Year 2008. Particularly in the second half of Year 2008, the expansions of international dissolving pulp capacity will give an impact on cotton linter pulp and downstream markets.
As Viscose fibres and textiles are resemble to cotton and very useful in sports, we assume a strong hike in price these year due to Olympic Games. In near future we see slow down in investment and in plant construction of Dissolving grade pulp. Currently the supply of Cotton linter pulp is enough and output is not been reached to a maximum level hence new added capacity will definitely add competition among the current players. Currently most the viscose plants operator have their own transformed and integrated process of their own raw material supply chain module. They will be also affected due to extreme competition in up-stream market. Few producers who are heavily depending upon the imported wood pulp will turn to starvation of raw materials. Here numbers of up-coming plants are not concerned but their capacities are attending more concerns. Large capacity will heavily impact on the market fundamentals of demand supply.
Last but not the list is effect on environment. Governments all over the world are strengthening their low for environment protection. In this scenario it would be very tough for the any official body, to approve grant for wood pulp industries. Hence there is also possibility that giants will move for takeover and merger acquisition strategy to get superiority in market. This would even help them in cut throat competition.
Price Comparison of VSF, PSF and Cotton
Chinese VSF Demand Supply
Indian Demand Supply of Viscose Staple Fibre (Million Kg)
Chinese Production Capacity of VSF 10,000 ton
Indian Production Capacity of VSF (Million Kg)
Production of Viscose in China
