VSF operating rate has fallen to a decade low of 55%

VSF operating rate has fallen to a decade low of 55% and the average run rate of pure rayon yarn was just above 40% in Aug, just next to the lowest level of Feb 2020 when the COVID-19 broke out. The operating rate of rayon fabric has also dropped to the similar level as it was during the National Day holiday of the past years and the entire industry chain is facing the same sales difficulties and loss-making pressure, coupled with the power rationing caused by the rare high temperature in Jiangsu, Zhejiang, Sichuan and Chongqing, most plants are semi-actively semi-passively "lying flat"