The "vicious circle" of unlimited price fall

Since last week, the northwest viscose staple fiber company has made a profit of about 12100 yuan / ton (Cheng Dui). Recently, the price of the enterprise has dropped to this point. The market mentality has improved panic. Previously, it was predicted that the price of 12500 yuan / ton (Cheng Dui) could be broken down, the price was falling down and it was hard to see the bottom, and there was no price in the market.

Since the beginning of March, the market price of viscose staple fiber and man cotton yarn has fallen by more than a thousand yuan. According to the market price and cost price of viscose staple fiber, the loss of more than 10% of the firm's trading volume has been over. Recently, the price of cotton yarn has gone down, and the price of viscose staple fiber has not bottomed out, and the yarn price has continued to fall.

In view of the current market situation, viscose staple fiber and downstream are all panic about price falling frequently, and because of the bottom of the price, under the guidance of risk aversion, the market is hard to sustain strong demand, and is plunged into a vicious circle of unlimited progress and falling prices.

It can be seen that the price stays down and the market reverses, and the essence remains to be supported by strong demand.

Inventory shift to "strange circle"

It is understood that at present, yarn enterprises generally hold stock of raw materials, even if they hold the demand for replenishment, or then replenish the market before and after the end of the month, it can be seen that with the increasing production scale of viscose staple fiber, active selling, controlling inventory, maintaining and stabilizing the source of tourists have become the main line of operation. Even if the yarn enterprises are to view the market, they will be pferred to the downstream even if the viscose staple fiber enterprises are strong enough to supervise the sales promotion, and they will be stocked with raw materials for downstream raw materials. Then the yarn enterprises will digest the stock. The viscose staple fiber exchange will be relatively dull, and the viscose staple fiber enterprises will continue to maintain production. According to