pressure of high inventory

Cotton products were cold-shouldered this year, so a lot of polyester/cotton yarn production was transferred to pure polyester yarn, pushing up the operating rate of polyester yarn. But amid low run rate of downstream weaving sector, polyester yarn supply is successive and now the product inventory has reached years’ high. During Dragon Boat Festival (Jun 3-5), polyester yarn was slightly destocked before the price was adjusted up under the stimulation of raw materials’ surge, but the trades returned to slack when polyester yarn price moved up. Thus, the inventory of polyester yarn will further accumulate in the future.