Clothes from trees: dissolving pulp, viscose and new fibers

← The Pulp Trade Map

The Pulp Trade Map · Innovation

China imported 4.54 million tons of dissolving pulp in 2025, as reported by China, twice its 2015 level. Most of it becomes viscose, a fiber made from wood. Newer wood-based fibers get more headlines, but each one in this post is a pilot, halted, frozen or cancelled, except Sodra's small plant.

Published October 27, 2026 · Facts as of October 27, 2026 · 10 min read · Sources listed at the end

Facts as of October 27, 2026. This page states the facts as they stood on that date. Figures, rules and company plans may have changed since publication. We review this guide every six months and update the pages.

More than 80%Share of global wood-based cellulosic fiber that viscose staple fiber provides, Sappi says ⁵

4.54 MtDissolving pulp imported by China in 2025, up from 2.25 million tons in 2015, as reported by China ²³

99.8%Share of lyocell solvent that Lenzing says it recovers, a company claim ⁴

100,000 tPlanned yearly capacity of Metsa Group's Kuura textile fiber mill, reported cancelled on August 13, 2026 ¹⁸

The 60-second version

What is it?

Dissolving pulp is wood pulp with very high cellulose content. It is made to be dissolved and spun into fiber ¹. A 2016 review says that in 2014, 88% of prehydrolysis kraft pulp and 80% of acid sulfite pulp went to viscose ¹.

Why does it matter?

Viscose was the main use of dissolving pulp in 2014 ¹. China and India together imported 5.37 million tons of dissolving pulp in 2025, as reported by each country ²³. Most new wood-based fiber projects have not reached that scale.

How does it work?

A viscose maker treats pulp with carbon disulfide and caustic soda, dissolves it and spins it into fiber ². A lyocell maker dissolves the pulp directly in a solvent, with no intermediate compound ³. Lenzing says it recovers more than 99.8% of that solvent ⁴.

Myth or fact?

"New wood-based fibers are about to replace viscose and cotton."

See the answer

Mostly myth. Sappi says viscose staple fiber provides more than 80% of global wood-based cellulosic fiber ⁵. Spinnova reported in February 2026 that demo production was halted ¹⁶, Infinited Fiber has a permit but no investment decision ¹⁷, and Metsa Group's Kuura mill was reported cancelled on August 13, 2026 ¹⁸.

In this post

1. What is dissolving pulp?
2. How does wood become a shirt?
3. What is the difference between viscose and lyocell?
4. Who makes dissolving pulp, and what does it cost?
5. How much dissolving pulp do China and India import?
6. Which new wood-based and recycled fibers are real?
7. Do US tariffs treat dissolving pulp differently from kraft pulp?

01What is dissolving pulp?

Dissolving pulp has much more cellulose and much less hemicellulose than paper pulp ¹. A 2016 review gives alpha cellulose of 92 to 94% for acid sulfite pulp and 94 to 96% for prehydrolysis kraft pulp ¹. Those two types are the ones the review covers.

The review says that in 2014, 88% of prehydrolysis kraft pulp and 80% of acid sulfite pulp went to viscose production ¹. Those shares are from 2014 and may differ now. Other end uses it lists are cellulose esters, cellulose ethers, and nano and microcrystalline cellulose ¹. Sappi lists textiles, non-woven fibers, microcrystalline cellulose, ethers and sponges as its focus markets ⁵.

Dissolving pulp trades under its own customs code, HS 4702 ²³. This matters in trade data and in tariffs, as the last section shows.

02How does wood become a shirt?

Four steps connect a tree to a shirt. A mill makes dissolving pulp ¹. A fiber plant dissolves the pulp and spins it, by the viscose or the lyocell route ^2,3. A spinner makes yarn, and a fabric maker turns the yarn into cloth. The two chemical routes differ only in step two.

1. Dissolving pulpA mill cooks wood to very high cellulose content, 92 to 96% alpha cellulose in the review's two types ¹.
2. Viscose or lyocellViscose uses carbon disulfide and caustic soda ². Lyocell dissolves the pulp directly in a solvent ³.
3. Fiber to yarnThe fiber is spun into yarn. Sappi names textiles and non-woven fibers as focus markets for dissolving pulp ⁵.
4. Fabric and clothesYarn is made into fabric and then clothes. Lenzing lists a denim grade and a wipes grade among its lyocell and viscose products ¹¹.

03What is the difference between viscose and lyocell?

Both fibers are cellulose, and both start as dissolving pulp. The difference is the chemistry.

Viscose adds carbon disulfide to the pulp in a step called xanthation, dissolves the result in caustic soda, and turns it back into cellulose fiber by spinning ². Lyocell dissolves the cellulose directly in an organic solvent, with no intermediate compound ³. A patent from the Courtaulds lineage names the solvent as N-methylmorpholine N-oxide, or NMMO ³.

Sappi sells a different pulp grade for each route. Verve Performer is for viscose and Verve Advantage is for the lyocell market ⁵. Sappi also says viscose staple fiber provides more than 80% of global wood-based cellulosic fiber ⁵.

Lenzing says more than 99.8% of its lyocell solvent is recovered and fed back into the loop. This is a company claim, and no independent audit of it appeared in our sources. WRAP, a UK textile organization, gives more than 99.7% ⁴. No source we found gives a recovery rate for carbon disulfide in viscose, so the table does not compare the two routes on recovery.

Compare

Viscose and lyocell compared

Recovery figures are company or industry claims, not audited. Sources are in brackets.

	Viscose	Lyocell
Starting material	Dissolving pulp 1	Dissolving pulp 5
How the cellulose is dissolved	Reacted with carbon disulfide, then dissolved in caustic soda 2	Dissolved directly in a solvent, no intermediate compound 3
Solvent	Caustic soda, with carbon disulfide in the xanthation step 2	NMMO 3
Solvent recovery	No figure found in our sources	Lenzing claims more than 99.8%. WRAP gives more than 99.7% 4
Share of wood-based cellulosic fiber	More than 80%, Sappi says 5	No share found in our sources
Sappi pulp grade	Verve Performer 5	Verve Advantage 5

Sappi says viscose staple fiber provides more than 80% of global wood-based cellulosic fiber.

04Who makes dissolving pulp, and what does it cost?

Sappi's Southern Africa page gives 1.15 million tons of dissolving wood pulp a year ⁸. EUWID reported in October 2022 that capacity at the Saiccor mill rose by 110,000 tons to 890,000 tons a year ⁹.

In Brazil, Bracell's Lencois Paulista mill is built for up to 2.8 million tons a year of bleached eucalyptus kraft pulp or up to 1.5 million tons of dissolving pulp. The two figures are alternatives, not a sum. Dissolving pulp production began on one fiber line in April 2022 ¹⁰. In Sweden, Domsjo makes 230,000 tons of dissolving cellulose a year, with lignin and bioethanol ²². For more on that model, see More than paper: the biorefinery.

On the fiber side, Grasim says its viscose staple fiber capacity in India is 824,000 tons a year. It says its Harihar site hosts the only rayon grade pulp plant in India, and that dissolving pulp also comes from group mills in Canada and Sweden ⁷. Lenzing reported nominal fiber capacity of 1,110,000 tons and 2025 revenue of EUR 2.60 billion. The release does not split capacity by fiber type ¹¹.

Sateri said in 2017 that it planned up to 3 million tons of viscose capacity by 2025, when its capacity was over 550,000 tons ¹². That was a plan. No source we found says what was built.

In its quarter ended March 2026, Sappi said hardwood dissolving pulp prices rose $60 to $845 a ton. It said sharply higher sulfur and sulfur-based chemical prices raised viscose production costs ⁶.

05How much dissolving pulp do China and India import?

The chart shows imports under HS 4702 as reported by each importer ²³. China imported 2.25 million tons in 2015 and 4.54 million tons in 2025, an increase of 102%. India imported 0.45 million tons in 2015 and 0.83 million tons in 2025, an increase of 87%. In 2025 China's imports were 5.4 times India's.

India's imports peaked at 0.95 million tons in 2024. India's grade data show dissolving pulp at 948 thousand tons in 2024 and 834 thousand tons in 2025, a fall of 12.0%. It was 38.1% of India's pulp imports in 2024 and 30.5% in 2025, out of 2.73 million tons ²³. No source we found explains the 2025 fall. For India's wider pulp buying, see India: the buyer that makes clothes.

These are the records of each importer. The records of the exporters for the same trade can differ.

Chart

Dissolving pulp imports: China and India, 2015 to 2025

• China
• India

Million tons. Source: UN Comtrade, as reported by China and India; partner rows; weights that failed checks are left out. 2025 data may be revised. HS 470200 (dissolving grades).

06Which new wood-based and recycled fibers are real?

Seven fibers or projects are listed below, each with a stage. Three are in production. Four are pilots, plants not running, or cancelled.

Renewcell's board decided to file for bankruptcy on February 25, 2024, saying it could not secure the financing to complete its strategic review. The court declared it bankrupt on February 27 ¹³. Altor bought the remaining assets on June 4, 2024, and created Circulose ¹⁴. Circulose announced on February 16, 2026 that it would restart the Ortviken plant in Sundsvall in the fourth quarter of 2026 and cited commitments from 11 brands ¹⁵. We found no report that the restart has happened.

Spinnova's February 12, 2026 bulletin says demo factory production was halted for the time being ¹⁶. Trial runs started in April 2026, with a larger restart targeted in 2026 depending on results ¹⁶. Infinited Fiber announced a EUR 400 million, 30,000 ton Kemi factory in June 2022 for 2024 ¹⁷. Yle reported in May 2025 that the project was on ice. A permit was granted on March 24, 2026, and no investment decision had been made ¹⁷.

On August 13, 2026, Packaging Insights reported that Metsa Group cancelled its Kuura mill. It quotes Metsa: "significant global overproduction has emerged in a short period" and "too few customers are willing to pay a premium for responsibly produced materials" ¹⁸. Those are Metsa's reasons.

A supply contract with an unbuilt plant carries performance risk. See buyer, country and performance risk. For other cellulose products at pilot scale, see New materials from cellulose.

How real is it?

Where each wood-based fiber stands, October 27, 2026

• In Production
  Viscose ⁵More than 80% of global wood-based cellulosic fiber, Sappi says.
• In Production
  Lyocell, Lenzing ^4,11Lenzing reports nominal fiber capacity of 1,110,000 tons for all its fibers in 2025.
• In Production
  Sodra OnceMore ¹⁹Textile pulp from 20% textile waste and 80% wood. In June 2022 Sodra said it would raise capacity tenfold to up to 6,000 tons a year, about 0.5% of Sappi's 1.15 million tons of Southern Africa dissolving pulp ⁸.
• Stopped
  Circulose, Sundsvall ^13,14,15Built as the first commercial-scale textile recycling plant, idle since February 2024. Restart planned for the fourth quarter of 2026, not confirmed.
• Pilot
  Spinnova Woodspin ¹⁶Spinnova's February 2026 bulletin says demo factory production is halted. Trial runs started in April 2026.
• Planned
  Infinited Fiber, Kemi ¹⁷Planned 30,000 ton factory is frozen. Permit granted in March 2026, no investment decision.
• Stopped
  Metsa Group Kuura ¹⁸Planned 100,000 ton mill. Reported cancelled on August 13, 2026.

Stage labels: In production (commercial plants running), Being built, Planned (announced, not yet built), Pilot (test plant), Lab (research only), Stopped (closed or cancelled). Stage is set by the evidence in the cited source. Planned capacity is not output.

07Do US tariffs treat dissolving pulp differently from kraft pulp?

Yes, in two 2026 actions. The US Section 301 action on Brazil sets a 25% tariff from July 22, 2026. Kraft, sulfite, semi-chemical and other pulps are exempt. Dissolving pulp is not ²⁰. USTR said it removed dissolving pulp from the proposed exemption list after testimony. It cited commenters who alleged that Brazilian producers benefit from illegal deforestation, and said there are limited downstream users, all with access to alternative domestic supply ²⁰.

The Section 338 action on Canada adds a 50% ad valorem duty from August 22, 2026. Dissolving pulp (4702.00.00) is the only Chapter 47 code on the list. Kraft, sulfite and semi-chemical pulps are not on it ²¹.

The duty depends on the HS code and the origin, so both must be right on the invoice. The pulp watch holds the dated list of rates and changes. For how a grade-specific cost enters a deal, see how trade finance is priced.

What this means for traders

• Ask what stage a new fiber has reached. In this post, three of seven are in production and four are pilots, idle or cancelled.
• Treat Circulose's fourth quarter 2026 restart as planned until a source reports output.
• Check the HS code and origin of a dissolving pulp cargo. US duties on Brazil and Canada differ for dissolving pulp and kraft pulp.

Questions traders ask

What is dissolving pulp used for?

Most of it becomes viscose fiber for textiles. A 2016 review said that in 2014, 88% of prehydrolysis kraft dissolving pulp and 80% of acid sulfite dissolving pulp went to viscose. Other uses include lyocell, cellulose acetate, cellulose ethers and microcrystalline cellulose.

What is the difference between viscose and lyocell?

Both are cellulose fibers made from dissolving pulp. Viscose uses carbon disulfide and caustic soda, with an intermediate chemical compound. Lyocell dissolves the cellulose directly in a solvent, usually NMMO. Lenzing claims it recovers more than 99.8% of that solvent.

How much dissolving pulp does China import?

China reported 4.54 million tons of dissolving pulp imports in 2025 under HS 4702, up from 2.25 million tons in 2015. That is an increase of 102%. India reported 0.83 million tons in 2025.

Did Renewcell and Circulose restart recycled textile pulp production?

Renewcell went bankrupt in February 2024. Altor bought its assets in June 2024 and created Circulose. Circulose announced in February 2026 that it would restart the Ortviken plant in the fourth quarter of 2026. We found no report that production has restarted.

Why are Spinnova, Infinited Fiber and Metsa Group's Kuura mill not producing at commercial scale?

Spinnova's February 2026 bulletin says demo factory production is halted, and trial runs started in April 2026. Infinited Fiber has an environmental permit for Kemi but no investment decision. Metsa Group cancelled Kuura, and gave overproduction and too few customers willing to pay a premium as its reasons.

Read next

• Makers and buyersIndia: the buyer that makes clothes
• InnovationMore than paper: the biorefinery
• InnovationNew materials from cellulose: what is real and what is still in the lab
• Money and rulesPulp watch: every rule and date in one place
• Money and rulesOne ton of pulp, two prices: $1,710 or $722?
• InnovationPulp against plastic: molded fiber and paper packaging
• Ossiano Trade Finance GuideHow each trade finance instrument works
• GlossaryTrade finance terms in plain English

Buying or selling pulp across borders? Ossiano Capital works on trade finance for pulp and paper trades.

Start the Conversation

Sources and notes

1. Chen and co-authors, review of cellulose (dissolving pulp) manufacturing and properties, BioResources 11(2), 5553 to 5564, March 9, 2016. https://bioresources.cnr.ncsu.edu/BioRes_11/BioRes_11_2_5553_Review_Chen_DLLMZSN_Cellulose_Dissolving%20Pulp_Manufacturing_Properties_8444.pdf
2. Ostberg, Hakansson and Germgard, Pulp reactivity for viscose, BioResources 7(1), 743 to 755, 2012. https://bioresources.cnr.ncsu.edu/BioRes_07/BioRes_07_1_0743_Ostberg_HG_Aspects_Reactivity_Pulp_Viscose_Gamma_No_2172.pdf
3. US patent 6,042,769, on lyocell and its manufacture, filed June 19, 1995; WRAP Clothing Knowledge Hub, Technology and Process (undated, read October 27, 2026). https://patents.google.com/patent/US6042769
4. TENCEL (Lenzing), fibers page (undated, read October 27, 2026); WRAP Clothing Knowledge Hub, Technology and Process. https://tencel.com/fibers
5. Sappi, Pulp products page (undated, read October 17, 2026). https://www.sappi.com/en-gb/products-services/products/pulp-products
6. Sappi Limited, results for the second quarter ended March 2026, May 6, 2026. https://senspdf.jse.co.za/documents/2026/JSE/ISSE/SAVVI/SAPQ226.pdf
7. Grasim Industries, viscose (cellulosic staple fiber) business page (undated, read October 17, 2026). https://www.grasim.com/viscose.aspx
8. Sappi, Sappi Southern Africa (undated, read October 27, 2026). https://www.sappi.com/about-us/sappi-southern-africa
9. EUWID Pulp and Paper, Sappi increases dissolving pulp capacity at Saiccor mill, October 6, 2022. https://www.euwid-paper.com/news/companies/sappi-increases-dissolving-pulp-capacity-at-saiccor-mill-061022/
10. EUWID Pulp and Paper, Bracell commences dissolving pulp production at Lencois Paulista mill, May 19, 2022. https://www.euwid-paper.com/news/companies/bracell-commences-dissolving-pulp-production-at-lencois-paulista-mill-190522/
11. Lenzing AG, press release on its 2025 annual and sustainability report, March 19, 2026. https://a.storyblok.com/f/306166/x/fd5acf4d3b/pa_2026_03_19_en_-lead-transformation-generate-impact-lenzing-presents-its-2025-annual-and-sustainability-report.pdf
12. Sateri, press release on up to 3 million tons of viscose capacity in China, April 19, 2017. https://www.sateri.com/en/news_events/sateri-to-build-up-to-3-million-tons-of-viscose-fibre-with-latest-china-expansion/
13. Renewcell, Re:NewCell decides to file for bankruptcy, February 25, 2024; Stockholm District Court approves Re:NewCell's bankruptcy application, February 27, 2024. https://www.inderes.se/en/releases/renewcell-decides-to-file-for-bankruptcy
14. Textile World, Altor Acquires Remaining Assets Of Renewcell, Ushering In A New Era As Circulose, June 4, 2024. https://www.textileworld.com/textile-world/fiber-world/2024/06/altor-acquires-remaining-assets-of-renewcell-ushering-in-a-new-era-as-circulose/
15. Circulose press release of February 16, 2026, as reported by Renewable Carbon News, February 20, 2026; Ecotextile, February 16, 2026. https://renewable-carbon.eu/news/?p=173674
16. Spinnova Plc, financial statements bulletin January to December 2025, February 12, 2026; Textile World, Spinnova Begins Trial Runs At Woodspin Demo Factory And Prepares To Restart Production, April 12, 2026. https://mfn.se/cis/a/spinnova/spinnova-plcs-financial-statements-bulletin-january-december-2025-spinnova-developed-its-technology-to-be-more-cost-efficient-and-advanced-the-consortium-building-186073c6
17. EUWID, Infinited Fiber plans EUR400m investment at Stora Enso Veitsiluoto mill, June 30, 2022; Yle, 400 million euro factory investment in Kemi is on ice, May 28, 2025; Uusiouutiset, March 24, 2026. https://yle.fi/a/74-20164396
18. Textile World, report on the start of pre-engineering of Metsa Group's Kuura mill, February 2025; Packaging Insights, Metsa pivots from textile fibers to food packaging as market conditions reshape strategy, August 13, 2026. https://www.packaginginsights.com/news/metsa-pivots-textiles-fiber-food-packaging.html
19. PULPAPERnews, Sodra increases production capacity of OnceMore tenfold, June 10, 2022; Sodra, About OnceMore (undated, read October 27, 2026). https://pulpapernews.com/en/node/13651
20. Office of the US Trade Representative, Notice of Action on Brazil under Section 301, signed July 15, 2026, published July 20, 2026 (91 FR 45516). https://www.govinfo.gov/content/pkg/FR-2026-07-20/pdf/2026-14542.pdf
21. The White House, Section 338 proclamations on Canada, July 20, 2026, with Annex II; US Customs and Border Protection, CSMS #69606660, August 21, 2026. https://content.govdelivery.com/accounts/USDHSCBP/bulletins/4261d04
22. Aditya Birla Group, Domsjo Fabriker (undated, read October 27, 2026). https://adityabirla.com/businesses/companies/domsjo-fabriker-domsjo
23. UN Comtrade, imports reported by China and India, HS 470200 (dissolving grades) and India's imports by pulp grade, 2015 to 2025; downloaded October 2026 and checked by us. Weights that failed checks are left out, and 2025 data may be revised. Shares and changes are our arithmetic. https://comtradeplus.un.org/

Trade figures come from UN Comtrade (2015 to 2025, as reported by 10 countries) and FAOSTAT (1961 to 2024), checked and recalculated by us; each chart names whose data it uses. All tons are metric tons. All facts on this page are as of October 27, 2026, the date of publication, and may have changed since. For rules and tariffs, check the pulp watch before you act.

About this post. Prepared for Ossiano Capital. People planned, researched, wrote and checked this post, using AI tools to help with research and checking. You are welcome to quote or reuse it: please credit Ossiano Capital and link to this page.