Orders improve in some regions amid overall weakness

Orders improve in some regions amid overall weakness.

As the traditional peak season of textile industry in the first half year, cotton yarn market showed very slack in this Apr hit by coronavirus pandemic. Even so, the market was not as bearish as expected in Mar. It was heard that downstream plants received a large amount of cotton gauze mask orders from Japan and the production could sustain to end-Apr, which promoted the procurement of cotton yarn like carded 40S. On the other hand, orders from China local market also improved, but mainly carded 32-40S. However, open-end cotton yarn, high-count cotton yarn and combed cotton yarn remained dull and the inventory kept rising. As a whole, cotton yarn market has not deteriorate further in Apr. The overall inventory is still in uptrend, but the increase slows down compared with that in mid- to late Mar.

As for operating rate, some cotton yarn mills have reduced production under the rise of inventory, but it is not seen at large. Overall run rate of cotton yarn mills has moved down slightly.