Xinxiang Chemical Fibre: 31.2kt Viscose Filament Capacity Shutdown Tightens Supply

Bullish · $000949.SZ

What Happened

Xinxiang Chemical Fibre announced the shutdown of its 31,200 t/yr biomass cellulose filament line from October 12, 2026, due to land reclamation, reducing 2026 output by about 8,500 tonnes. The broker notes this removes roughly 12% of China's viscose filament capacity, reinforcing a tight supply-demand balance.

Bottom Line

The broker is bullish on Xinxiang Chemical Fibre and the viscose filament sector, citing capacity cuts and resilient demand that should keep prices and margins elevated.

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