Polyester/cotton yarn mills operate under lasting high pressure of late

Polyester/cotton yarn price sustains falling, and the inventory keeps rising to the highest since 2016 and does not show downtrend now. According to the major producing areas including Fujian, Shandong and Jiangxi, the sales of polyester/cotton yarn are much poorer than the past years and inventory of most plants hits historical high. In Shandong, the inventory of some plants reaches up to three months. In addition, production cut is seen nationwide, especially in Shandong. At present, polyester/cotton yarn supply is ample and price competition among the plants presents fierce. However, the lower price just spurs the end-user demand limitedly.

Polyester/cotton yarn mills operate under lasting high pressure of late. The depreciation of inventory, financial cost caused by tight capital and lost labor due to production cut will perplex polyester/cotton yarn mills for long. Thus, the poor performance of domestic market and export sales is likely to be normal and the mills need to prepare for the “protracted war”.