Sep 06, 2023
VFY price was volatile in the first quarter of this year, but it had been stable since the end of Mar. Around the Spring Festival, downstream plants tried to talk down prices. However, VFY companies responded with price increase and stabilized the expectations. In the second quarter, there was an increased sensitivity to prices from the demand side, leading to a slowdown in sales. However, VFY plants showed a strong intention to maintain stable prices, contributing to an overall stabilization of the market.
Chinese domestic market demand has shown some recovery compared to the previous year, while exports have declined. There were concerns in the earlier period about foreign exchange constraints in Pakistan, which affected exports. However, there has also been a slowdown in orders from major destinations such as India and Turkey. Overall, in the first half of the year, the market maintained a certain steady trend, supported by previous orders and inelastic demand both at home and abroad. However, starting from the second quarter, there has been a gradual accumulation of inventory.