A Powerful Cold Air Mass Is Affecting Chin

Currently, a powerful cold air mass is affecting China, bringing temperatures down as far south as South China. Regions in Northeast China, North China, the Yellow River Basin and South China will see continuous temperature declines, with many areas in the central and eastern regions likely to hit new lows for the past six months. Meanwhile, there will be widespread precipitation in the central and eastern regions, though the intensity will generally be low, with some areas in Gansu, Ningxia, Shaanxi, and Shanxi possibly experiencing rain-snow transitions.

In early-November, downstream businesses continued to weaken, leading to a slight accumulation of grey fabric inventory. In some regions, downstream plants began to lower their operating rates to manage inventory while showing low sentiment towards speculative replenishment of raw materials. Even when stock are at a low point, replenishment is limited to just meeting essential needs, with some opting for moderate production cuts. This is partly due to a pessimistic outlook on future raw material prices and a gradually diminishing expectation for upcoming orders.