It can be seen from chart that cotton inventory in cotton yarn mills has already been at low level

It can be seen from chart that cotton inventory in cotton yarn mills has already been at low level, and could only last for half a month. However, the normal averaged value is around 30days. In 2021/22 season, cotton inventory of cotton yarn mills narrowed constantly, and it gradually reduced from 46days to 15days. Downstream fabric mills kept low cotton yarn inventory, and more fabric mills produced order by order. There will be restocking demand in the future, and downstream demand will be the key factor to inhibit replenishment volume. Both domestic and foreign sales lacked firm support, so yarn and fabric mills mostly stocked up with cautiousness. New Year Eve this year is on January 21th, which is two months from now. According to customs in previous year, enterprises will be on holiday successively after January 1st. However, the holiday of enterprises this year may be earlier in the second half of December. If there is expectation on the market, it will be some restocking in the second half of December mainly because the feedstock stockings were scarce amid the moving down of prices this year. The market tends to be expected after Spring Festival. Thus, mills will stock up as they need the stocking of feedstock for production. If there is restocking market before Spring Festival, the production may focus on replenishment with scattered volume.