Two pressures are converging on the cellulosic fibre industry. Market observers see prices firming, with Chinese lyocell reaching CNY **,*** (~$*,***) a tonne in early September. At the same time, sustainability teams are preparing for the EU Deforestation Regulation (EUDR), which will apply to large and medium operators from December **, ****. Under the EUDR, the relevant due-diligence obligation applies to regulated wood and pulp products entering the EU market, including dissolving wood pulp, rather than finished viscose, lyocell or modal fibres, which are outside the regulation’s current product scope.
What is really moving cellulosic fibre prices?
The price movement is real but modest, with no clear evidence that the EUDR is driving the current increase. Lyocell edged up to CNY **,*** (~$*,***) in the week to September *, while viscose staple fibre has also firmed and dissolving wood pulp, the feedstock for both, has remained firm.
