Rayon industry has been improving somewhat as the prevailing price of medium-grade VSF has recovered from 12,400yuan/mt to almost 13,000yuan/mt and rayon yarn price is stable to stronger, especially rising offers of vortex-spun and open-end yarn. Rayon fabric sales have also turned better.

Regarding raw materials of rayon industry, VSF plants gradually raised offers amid tight delivery of the goods and trading price kept firmer. The producers were not eager to expand pre-sale. Major companies even limited the order volume, and there are not sufficient goods available by traders. However, the spinners are still actively building up stocks, and in this case, the physical inventory of VSF plants keeps falling, which has dropped to 2-year low. Considering the traditionally peak season in Sep, the price of VSF is expected to rise steadily.