Compared with polyester yarn, polyester/cotton yarn is more paled

Compared with polyester yarn, polyester/cotton yarn is more paled. Most mills still hold 20,000yuan/mt cotton stocks. Currently, cotton price dropped close to 15,000yuan/mt and the cash flow of polyester/cotton yarn has turned positive, but in fact, the mills are still at significant losses. A large number of spinners in Shandong, Jiangsu, Hebei and Fujian cut production or shut down and the inventory generally reaches over one month, some more over two months. So the operating rate of polyester yarn will further move down. Under the background of bearish domestic demand and bans on Xinjiang cotton, apart from slump of raw materials, the mills producing cotton products are experiencing their “Darkest Hour”