Orders for autumn and winter dominate China local market and prices of lower-count ones are relatively firm

Orders for autumn and winter dominate China local market and prices of lower-count ones are relatively firm.

Recently, it is heard that downstream weavers are mainly processing the orders for autumn and winter and using cotton yarn with low counts. In addition, due to large spread between spot and forward imported cotton yarn, cotton yarn imports reduce and downstream weavers have changed to use Chinese cotton yarn instead of imported one. Under the background of increased demand and reduced supply, 32S and those with lower counts decline a bit less. 40S and those with higher counts were traded mediocrely and dropped a lot. In the meantime, combed 32-40S also see poor demand and the underselling on the market is heard to be centered in combed 32-40S. According to CCFGroup, the price gap between carded 32S and carded 40S which was 1,000yuan/mt in general has narrowed to less than 500yuan/mt