most of the traders and fabric mills still purchase raw materials to meet the minimal requirements without speculative intentions

Even with such huge losses, most of the traders and fabric mills still purchase raw materials to meet the minimal requirements without speculative intentions. It is reasonable for fabric mills and yarn traders to be cautious because of fewer orders and losses. As for traders, the days of account receivable are extending. Bad debt rate, capital efficiency and depreciation are all the factors they are worried. Now the inventory of rayon yarn has risen to 35 days, which is expected to exceed the peak of 2020 before the Chinese Lunar New Year.