The proportion of Xinjiang cotton yarn production is relatively large

1.The proportion of Xinjiang cotton yarn production is relatively large, which leads to the reduction of domestic cotton yarn supply

The spinning capacity in Xinjiang has exceeded 20 million spindles. As the second largest production base in China, the capacity accounts for around 15% of national total. In 2021, cotton yarn production in Xinjiang accounted for more than 25% of the total cotton yarn production in China, which shows Xinjiang cotton yarn’s position is absolutely pivotal in China. Now on the one hand, cotton yarn mills in Xinjiang reduced and suspended production amid the influence by epidemic, making production decline obviously. On the other hand, domestic cotton yarn supply from Xinjiang will slip apparently as cotton yarn transported out of Xinjiang is blocked. The reduction of cotton yarn supply in consumption regions will be beneficial for domestic cotton yarn consumption to some extent. However, market demand shrank after National Day and downstream orders lacked, making cotton yarn prices still hard to rise with great resistance.