Demand spurs the price

The demand for open-end cotton yarn actually turns better. Firstly, downstream orders increase. The first half year is indeed the peak season for open-end cotton yarn in terms of seasonal demand. Secondly, under much higher price of forward imported cotton yarn, cotton yarn imports declined and traders and downstream plants turned to operate or use Chinese open-end cotton yarn for instead. Thirdly, downgrade of products. At present, cotton price remains high and downstream plants could only obtain thin profit, or even suffer losses. They have to lower cost and use cheaper open-end cotton yarn. The most replacement is seen between open-end cotton yarn and Pakistani siro-spun one for denim, and between open-end 21-32S and ring-spun 21-32S. Fourthly, downstream buyers stock up facing the surge of raw materials.