Trading in the Chinese cotton yarn market remains weak. Market activity has been low. The epidemic has put a burden on the global cotton industry. Operating rate of fabric mills is still only 20 per cent. Orders currently catered to by weavers are mostly pre-holiday orders. Weavers mostly produce conventional varieties and open-end ones with lower value and less capital, which is commonly referred to as low-end fabric stocks. Most companies are now more worried about the epidemic.

International cotton yarn prices are weaker than domestic prices. Domestic yarn supply and demand are weak. Yarn mills have little inventory and there will be not much burden in the short term. Yarn mills have recovered much better than fabric mills.

Prices of international cotton yarns fell significantly faster than domestic ones. The imported yarn market will still have price advantages, or may still have a place in the Chinese market. In short, due to weak demand, the decline in cotton prices and the fall in imported yarn prices, the overall market price of cotton yarns in China is predicted to be weak. As the epidemic has spread to Japan, South Korea and Europe, there is a possibility of further spread, and the international market has become increasingly worried.