VSF industry performance was commendable in 2016 amid steady growth of demand both at home and abroad, especially hiking export volume. Meanwhile, VSF market was bolstered by maintenance of units and participants gradually retrieved confidence on good fundamentals. Prices also gained increment for several times because of speculation.
||VSF market bottoms out
||VSF was changed hands around 12,000yuan/mt on large volume in line with increasing orders from end-user market, so the market warmed up before Lunar New Year holiday.
||Lotte Group acquires Samsung Group’s chemical businesses
||Lotte Group took over Samsung Fine Chemicals Co., which became its wholly-owned subsidiary. Lotte also acquired 90% stake of Samsung SDI Co., and 49% stake of Samsung BP Chemicals Co., through the deal estimated at 2.6 billion USD.
||Zhongtai Chemical to build 300kt/year VSF plant
||Zhongtai Chemical signed the agreement of constructing 300kt/year VSF plant in Alaer, Xinjiang.
||Sanyou Group starts building world's largest VSF production line
||Tangshan Sanyou started construction on its 250kt/year VSF plant on May 6, including two lines with annual capacity of 125kt for each, which is regarded as the world's largest VSF production line.
|10th China Hangzhou Cellulose Fiber (Viscose) Industry Forum
||10th China Hangzhou Cellulose Fiber (Viscose) Industry Forum held in Hangzhou called for protecting endangered forests.
|Sateri acquires controlling stake in Linz (Nanjing)
||Sateri completed the acquisition of a controlling stake in viscose yarn producer Linz (Nanjing) Viscose Yarn Co., Ltd in Nanjing of China, with an annual production of 8kt of high-end cellulose fiber yarn.
||Start-up of Jilin Chemical Fiber's 10kt/year semi-continuous spinning VFY unit
||Jilin Chemical Fiber started production on 10kt/year continuous-spinning VFY unit and also started building 10kt/year continuous spinning VFY line
|Water shortage forces Grasim to suspend operations at VSF plant in MP
||Grasim Industries Limited, a flagship company of the Aditya Birla Group, has suspended operations at its plant in Nagda, Madhya Pradesh, due to water shortage.
||Soaring VSF price
||VSF price skyrocketed on hiking cotton, with monthly increment of 2,500yuan/mt.
|India keeps levying anti-dumping duty on VSF import from China and Indonesia
||Ministry of Commerce and Industry of India on Jul 8, 2016 launched sunset review instigation applicable to the anti-dumping measures of Chinese and Indonesian viscose staple fiber (excluding bamboo fiber). Anti-dumping duties of $0.103-0.512/kg will keep being levied on the products import from those two counties (H.S. code: 550410).
|Zhongtai Chemical to increase capital to Xinjiang Tiantai
||Zhongtai Chemical signed agreement with Gaomi Silver Hawk and Xinjiang Tiantai to increase capital to Xinjiang Tiantai Fiber Co., Ltd to further improve its viscose fiber productivity and further raise market share. Zhongtai will hold 35% share of Tiantai after capital increase.
||Sateri confirms machinery orders to expand VSF capacity by 1 million tons
||On 8 August 2016, Sateri has confirmed orders for machineries to expand its VSF production capacity by 1 million tons. This will position Sateri as the largest VSF producer in the world by 2020. The total investment in the expansion is expected to exceed RMB10 billion.
|Xinjiang Fulida becomes controlling shareholder of Bazhou Taichang
||Xinjiang Fulida Fiber Co., Ltd as wholly-owned subsidiary of Xinjiang Zhongtai Chemical Co., Ltd signed reorganization framework agreement with Bazhou Taichang Pulp Co., Ltd on Aug 25, 2016. Xinjiang Fulida will own 51% share of Bazhou Taichang and become its controlling shareholder by capital increase.
||G20 Summit affects local textile industry operation for half a month
||Yarn capacity of Xiaoshan and Shaoxing exceeded 3 million spindles and shutdown of local textile industry aroused hiking prices of most chemicals.
|Zhongtai Group invests in overseas spinner
||The plant located in Tajikistan is scheduled to build 60,000-spindle unit as phase I project.
||Start-up of Jilin Chemical Fiber's 10kt/year continuous-spinning VFY plant
||Jilin Chemical Fiber successfully started production on its 10kt/year continuous-spinning VFY unit and shut down its 5kt/year line, planning to further expand capacity by 10kt/year.
Both VSF and VFY opened and ended the year on a stronger note. The inventory had dropped to low level by the end of 2016 and participants have big expectations for 2017.