Viewpoints of wait-and-see faction

1. VSF loss has not hit the peak within the year and some buyers expect the price no higher than that of Sep.

2. End-user demand has been unsatisfactory since Nov. Yarn market is lack of highlights and some yarns are even unsalable.

3. Weaving mills may be close for Chinese Lunar New Year holiday earlier versus past years.

There is objective evidence for both sides, but according to our observation, participants who wait and see generally consider the post-holiday trend and there is uncertainty on demand recovery. As far as pre-holiday market is concerned, participants’viewpoints are more close to the major contradiction and buyers can rationally purchase VSF during this round of decline.