cotton yarn mills obtained great profits

In Jan-Sep 2021, cotton yarn mills obtained great profits, but from Oct, the profits shrank quickly and then moved to the territory of losses. Currently, cotton yarn C32S still suffered prompt losses of nearly 3,000yuan/mt, about 1,000yuan/mt higher than the largest losses seen in Sep 2020 when many mills ran at a rate less than a half of normal level. Therefore, it is not surprising that cotton yarn mills prefer to take holiday earlier and prolong the holiday. Cotton price keeps rising at present, which booms the expectation of cotton yarn market participants, but it is still hard for the mills to profit from the losses. That’s why they choose to reduce production despite bullish anticipation to post-holiday market.