The operating rate of cotton yarn mills was hard to move up as supply was inhibited

Cotton yarn mills reflected that much more workers were infected by epidemic since the second half of last week due to the release of epidemic control. The infection proportion reached low level at 10%-20% while reached high point at 50% or even higher. Workers couldn’t all be in operation, making the operating rate hard to improve and gradually slip, and some mills began to give holiday. It can be seen from the char below that the operating rate moved up obviously after the release of epidemic control in a short period of time, but began to slip when it hasn’t recovered to the high level at previous stage. The operating rate this week is expected to move down further, and the second reason for fast cotton yarn destocking was because supply couldn’t increase as cotton yarn operating rate was hard to move up.