First, Mr. Zhang introduces the development overview of the lyocell industry. In terms of production process, lyocell is indeed more environmentally friendly than VSF, but it also needs to pay attention to product design and other aspects in its development. Lyocell's production capacity is rapidly expanding globally, with a capacity of over 500kt/year in China, surpassing that of viscose filament, and its scale will continue to expand in the future. In terms of demand, the domestic market is also rapidly expanding to match industry development.

Then Mr. Zhang interprets the report on the popular trend of lyocell fiber applications. Through thematic investigations and visits, the report mainly studied the spinning industry chain, in order to give some guidance to enterprises. As more and more yarn enterprises begin to use lyocell, its fiber characteristics have been well understood, and the brand concept of Tencel has been weakened. Fabrics are still mainly for spring and summer, while autumn and winter products have also made breakthroughs. Dyeing and printing theories are relatively mature, but industry-university-research cooperation still needs to be strengthened. It is more suitable to find a suitable ratio to improve the success rate and avoid fibrillation issues. Clothing is mainly focused on sports and leisure, with the characteristics of safety and comfort meeting the requirements of children's clothing. The highlights and pain points coexist in the home textile industry, and the material itself is a selling point. Merchants have already distinguished the concepts of lyocell and Tencel.

Finally, the report shows use the industry's development prospects. Although the lyocell industry still faces many challenges, we believe that China can lead the trend of lyocell industry chains in the future. The directions of efforts within the industry include diversifying raw material sources, improving product quality, shaping sustainable brands, improving standard systems, and enhancing cooperative development of the industry chain, etc.