Spinners see less orders with coming traditional slack season

Cotton yarn market went thinner after Tomb-Sweeping Festival, and was basically into slack season after May Day holiday. Though the market weakened earlier, it was in line with the traditional period. Currently, downstream orders have reduced apparently. New orders were limited and volumes were mainly small. According to CCFGroup, operating rate of some fabric mills in Guangdong has dropped to 30-40%. Though most players hold bullish anticipation in long run, they hold not positive anticipation in medium to short run, considering that the speculation on weather condition will not continue for long time. If sales keep bleak after the withdrawal of capital, cotton prices are likely to decline, so buyers remain cautious to purchase cotton. Though cotton demand is less compared with previous period, cotton yarn inventory is still at a low level, and operating rate of spinning mills maintains high, supportive to cotton prices.