Cotton inventory in spinning mills

2. Cotton inventory in spinning mills
Most mills replenished feedstock last week when cotton futures market fell down, and the purchase willingness weakened this week. According to CCFGroup, cotton inventory in medium and large mills is at 40-60 days, and that in medium mills is 25-35 days. The cotton inventory is supposed to be relatively low in 2020 compared to previous years. Besides, affected by the novel coronavirus, downstream demand weakens somewhat, and the consumption speed of cotton is slow. Mills mainly consider two factors currently, to slow down the purchase this week. One is that most mills have replenished feedstock last week. Another is that some mills expect that ZCE cotton futures may rebound in Mar, and they consider to purchase cotton at low level.