The report is mainly divided into four parts:

1. Destock, price and profitability. The lyocell market has performed well, with sales soaring, monthly orders booked, two months of pre-sale orders, and two months of inventory pressure. Prices have been strengthening all the way, and losses have been turned into profits, and plant operating rate has also risen to new highs in post-epidemic period.

2. To open source and reduce expenditure, the market is with joys and worries. Lasting for more than half a year, the nearly 10,000yuan price difference between cotton and lyocell finally prompted downstream alternative purchase for lyocell, but the attractiveness has also decreased after the price difference disappeared - the persistence is weak. The export of lyocell has increased greatly, up 242% compared with the same period last year, but the absolute amount is limited. The price of raw materials has risen sharply, and at the same time, the prices of chemical products, electricity and energy have all risen. The increase in the overall production cost is close to the increase in fiber prices, giving support as well as pressure.

3. Market scale is expanding and the output is still increasing. The pace of investment and expansion has not stopped, and the China domestic lyocell expansion cycle continues. 100% lyocell yarn consumption is stable but not enough to support. After more than half a year of destock, inventory accumulates again. It is necessary to consider the adaptability and selection of pulp. The the price difference of imported softwood pulp, dissolving pulp, and lyocell pulp is about $200/mt. There are more suppliers to choose from, and it can also be purchased in advance, so the actual cost increases are lower.

4. Facing difficulties, pressure and motivation, Ms. Hua used SWOT method to analyze the long-term advantages, disadvantages, opportunities and threats of the Lyocell industry, and pointed out that the pressure is emerging from a short-term perspective.