Since the beginning of the year, the theoretical profit of rayon yarn for various technology has suffered significant losses. After the Chinese New Year, the situation started to improve. Currently, conventional varieties such as compact-spun, siro-spun and open-end yarn have all recovered to above the break-even point. However, ring-spun and vortex-spun yarn that accounts for nearly 70% of the rayon yarn market share, are still below the break-even point (although not far from it).

Since Jun, the decrease in yarn prices has been less than that in raw material prices. Yarn mills are reluctant to sell at low prices as they did in the first half of the year. Additionally, with the upcoming traditional peak season for textile products in Sep and Oct yarn mills are more inclined to gamble for the peak season, resulting in anticipated gradual improvement in profitability for yarn in Aug and Sep.