Profit deteriorated but no reduction in production yet

Cotton yarn profit declined further as yarn prices failed to increase after the rising cotton prices. As can be seen from chart below, mainland spinners now suffered a theoretical spot loss of carded yarn 32s at around 1,000yuan/mt, the lowest level since latter half of 2022, and the profit of one-month cotton inventory was also rather frustrating. Spinners haven't taken any steps to reduce or suspend production yet, as cotton yarn inventory remained low at present, but with inventory accumulating and profit getting no improvement during off season, a reduction in production is expected in Jun and Jul.