In 2018, China's viscose staple fiber production capacity increased by nearly 7,00,000 tons. Due to the increase of production capacity, supply in the viscose staple fiber market is exceeding demand, leading to a fall in price.

From January to March 2019, the production of viscose staple fibers was about 9,50,000 tons, and the inventory in the first quarter was about 4,00,000 tons. From January to March 2019, the market price of viscose staple fibers fell by 12.73 per cent. Viscose staple fibers are experiencing a great shock of energy and price rebalancing after the full release of production capacity.

The viscose staple fiber market price in China is expected to rebound in the second quarter of 2019. Viscose staple fibers factories need to adjust their start-up rate reasonably. Downstream yarn factories can also actively participate in the market. In this way, the viscose staple fiber industry is expected to step out of the deep loss situation. Viscose staple fiber production in China has managed to offset the year-on-year drop in polyester and acrylic staple fiber production. But polyester staple fiber production still makes up the bulk of overall staple fiber production in China. Acrylic staple fiber production is expected to account for 4.4 per cent of total staple fiber production in China.