The operating rate of cotton yarn mills in China has reduced continuously. Chinese cotton yarn mills have still not recovered to normal production due to the loss of spinning and the difficulty of procuring cotton.

With December about to end, it is hard for mills to recover their operating rate to the high level in September. On the other hand, the expectation on the future cotton yarn market turned from pessimistic to slightly optimistic as the relaxation of the epidemic control policy increased the confidence of market participants and ZCE cotton futures were firm.

Downstream fabric mills and traders had few stocks in hand, and the willingness to stock increased obviously compared to previous stages.Price-rising sentiment moved up with the improvement of sales and firm ZCE cotton futures. Offers in some mills rose and the discounts given at previous stage were canceled. But the trading sentiment was still not as good as that in the previous year.

The inventory of cotton yarn mills was not low, and cotton yarn prices were still under control. If the future market sustains, cotton yarn prices may start rising. After all, the overall cotton yarn inventory pressure has relaxed this year in terms of overall stocking volume.