The cotton textile industry in China experienced a tough year in 2019. In early November, pushed up by cotton prices, cotton yarn mills saw a higher cost pressure. In terms of actual transactions, conventional carded cotton yarn saw smooth sales, good demand and even tight supply and the price tended to be stable. Sales of combed cotton yarn were not as good as those of carded.
There were inadequate orders for cotton yarn due to weakening downstream demand. However, cotton yarn trading performed better in late November than it did in the same period of last year and has not shown signs of weakness. Orders for cotton grey fabric from the local market and overseas markets were inadequate and the inventory increased slightly. Orders for weavers were mainly from regular customers. Differential products performed well. With the year coming to an end, many weavers were burdened by repayment and wages of workers.
Many cotton yarn mills are starting to replenish cotton at a small amount for next year’s production. Currently, the cotton in medium yarn mills can be scheduled for about a month. Sales of open-end cotton yarn weakened but the price was stable due to low inventory. Some discounts were seen.