NFY plants' O/R cut heavier than downstream

Entering Oct, run rates of downstream market had different trends. Wujiang water-jet loom recovered quickly from less than 20% to 65%, Zhejiang and Jiangsu circular-knitting loom lifted from 42% to 47%. But mills in Fujian and Guangdong were under heavier restriction, as the overall run rates of local lace, warp kitting and circular knitting looms dropped 5-20% in Oct.

The production cut of NFY plants in Oct was more than all of the downstream sectors, as the average run rate dropped from 59% to 54.5% by Oct 13.

In addition, as the energy market and other textile industries including polyester and cotton all ramped up greatly during the National Day holiday (Oct 1-7), downstream were more actively restocking NFY.