The feedback from the demand side indicates that both the export and sales in China local market are moderate, with potential improvement in the second half of the year. The supply reduction is becoming more pronounced. Currently, there are less than ten 100% rayon yarn producers in East China with less than 100 sets of machines. In Xinjiang, nearly 20% of the 500 machines are idled. In addition to that, some capacity is utilized for in-house consumption and production conversion. As a result, the actual production of 100% open-end rayon yarn is much lower than before. This is also one of the factors contributing to the prolonged comparable pricing of open-end yarn with vortex-spun yarn in recent years.