end-user demand continues to be sluggish and intermediate link fails to boost the market

When end-user demand continues to be sluggish and intermediate link fails to boost the market, the upstream segments of the industry chain including yarn and VSF almost have no choice but to cut production apart from trying to compete for the remaining market share. However, there is still something worth expecting. First is demand outside China. Buyers in overseas market will generally purchase yarns and fabrics before Chinese Lunar New Year, and the price has also reached the psychological level of some foreign trade customers. Secondly, although traders from China local market have suspended procurement, they will still show buying indication in late Dec or early Jan. However, we cannot express excessively high expectation for the demand.