Chemical fiber industry: viscose industry is expected to short-term improvement

After the Chinese New Year, the textile industry operating rate gradually restored, viscose as well as the upper reaches of the cotton linter, downstream Human cotton prices bottomed out. Pre-viscose output continued to lower the second half of 2008, the country produced a total of 646,800 tons of viscose staple fiber, the same period last year dropped by 24%, the market supply reduction, as downstream demand continues to increase for some time to come, viscose short defibrase prices expected to continue rising. In addition, the viscose cotton alternative has a certain role, viscose, cotton prices are at a low stage, cotton prices rebounded team has played a supportive role in viscose prices. Therefore, we believe that in recent months viscose prices will steadily rise in the trend, it is proposed Shandong Hailong concern (4.59,0.09,2.00%) (000677.SZ, Rmb4.75, overweight), O ocean science and technology (6.92, -0.25, -3.49%) (002172.SZ, Rmb7.97, unrated).