The cost of cotton yarn mills rises as domestic cotton supply is tight and prices are firm

The cost of cotton yarn mills rises as domestic cotton supply is tight and prices are firm

Cotton stocks in cotton yarn mills were continuously at low level as market commonly expected the falling of cotton prices, and the averaged inventory was less than 20 days till now. Though prices of cotton futures continued to drop, actual spot cotton prices were very firm mainly as unsold cottons were concentrated and domestic cottons were few. Now cotton transported out of Xinjiang was harder due to the upgrading of epidemic control in Xinjiang. At present, domestic cotton inventory of industry and commerce could only be used for more than one month, making spot cotton prices easy to rise and hard to drop in short term. Cotton yarn mills may face  cotton supply shortage and the rise of cost. Cotton yarn prices are very hard to rise with great resistance as downstream demand lacked, and the cotton yarn mills may suffer losses again.