The inventories of high-count pure cotton yarns and polyester-cotton blended yarns are massively declining in China due to high demand since last couple of weeks.
The same has been stated by cotton textile firms located in Jiangsu, Shandong and Anhui, amongst other places.
Ring spinning and OE yarns of C40S (or below) have witnessed great surge in the terminal consumer market and most of the spinning mills have accelerated their destocking for these products.
According to a medium-scale cotton spinning factory based in Jiangsu, there have been two major trends for mainstream yarn products since August: (1) to increase the output of carded 40S and combed cotton yarns above 40S, while reducing cotton yarns with counts below C32S; (2) to increase the production capacity of T/C 65/35 45S, T/C 60/40 45S and other polyester-cotton blended yarns including T/C 35/65 and other inverse proportion polyester-cotton yarns) which includes strategy of focusing on expanding exports to the Middle East, the ‘Belt and Road’, South Korea and Japan.
However, the situation might not remain intact in long run seeing the USA’s ban of importing cotton from Xinjiang, China.
The only satisfactory development for the Chinese cotton mills is that the COVID-19 spread is under full control which has made it possible to get production back on track.
“Except for US ban, majority of buyers and retailers have started to place orders for the spring and summer of 2021. But the dismal performance of C32S and above cotton yarn and polyester-cotton yarn is still an issue,” said another textile factory in Shandong.