downstream weavers withdrew capitals late, so the replenishment plan postponed

Thirdly, downstream weavers withdrew capitals late, so the replenishment plan postponed.

In earlier stage, the weavers basically purchased for pressing demand, and the overall inventory of yarn was limited, so it was necessary to prepare goods for consumption in the coming year. Recently, the trading sentiment in Guangdong and Shandong has improved, and the weavers in these areas have withdrawn capitals late, so replenishment continued.

In conclusion, market players mostly hold bullish expectation to post-holiday market. But whether it can usher in a real bull market in the imported cotton yarn market after the Spring Festival holidays needs to further observe the downstream orders and the destocking of finished product inventory in textile mills. At the same time, pay attention to the macro risk: whether the Fed raising interest rates to curb inflation will drive commodities into a bearish market and then affect domestic cotton yarn prices, and whether the replenishment will curb the demand for cotton yarn after the holidays in the short term.