One of the most significant sources of China VSF industry, Cotton Linter Pulp or CLP used to play a critical role but it has been waning of late. At its peak, CLP capacity surpassed 2.15 million and more than 40 enterprises offering it but volumes have decreased in recent years, and made up only around 1.3 million tons/year till the end of 2016. CLP has been a major raw material for viscose fiber for years and it comprised 70 per cent of China's pulp supply before 2006. But its now struggling to survive. Besides further increase of imported Dissolving Wood Pulp (DWP) is affecting CLP made up less than 10 per cent of total pulp supply in China in 2016.

CLP is facing tough times primarily due to competition as its being replicated due to quality issues. CLP is made from cotton linter and cotton linter a byproduct of cotton whose production is correlated with cotton output. With declining cotton production in recent years, cotton linter supply too is tight. Then there are sustainability issues the scale of Chinese CLP companies is largely smaller compared to DWP enterprises, with annual capacity of no more than 100 kt and running intermittently. The black liquor made during production is a global issue. Only a handful of big companies barely meet the sustainability standards as they could ramp up their technology. Then there is the cost factor. CLP production cost has been increasing. In 2016, low-quality cotton linters for staple-grade CLP was more than 5,000yuan/mt up from 3,000yuan/mt. It is remarkable that waning CLP in the article mainly targets at viscose-grade CLP.