Confidence recovered in the market amid the release of epidemic control, and traders were active to restock

The trading sentiment changed obviously after the release of epidemic control since early-Dec. Cotton textile enterprises called for having holiday in advance in Nov, but now most mills were endeavor to produce, and the voice of being on holiday in advance reduced apparently mainly as market participants’ expectation on Chinese market after Spring Festival has changed from pessimistic to optimistic amid the release of policy. As traders and fabric mills stocked few, they were active to stock up for peak season after Spring Festival. The recovery of Guangdong Zhongda market also accelerated. However, end orders and orders in fabric mills actually didn’t have large improvement, which was distant from cotton yarn trading sentiment now. The procurement recently was still mostly for speculative replenishment, and traders were of higher proportion to buy. According to CCF Group, cotton yarn inventory reduced 18.9days compared with early-Dec while cotton yarn inventory in fabric mills only rose 7.5days.