Cotton textile firms in Jiangsu, Shangdong and Anhui have reported a massive decline in inventories of high-count pure cotton yarns and polyester-cotton blended yarns in China due to high demand for last couple of weeks, says Apparel Resources. Demand for ring spinning and OE yarns of C40S (or below) has surged in the terminal consumer market and most of the spinning mills have accelerated their destocking for these products.
According to a medium-scale cotton spinning factory based in Jiangsu, there have been two major trends for mainstream yarn products since August: increase in the output of carded 40S and combed cotton yarns above 40S, while reducing cotton yarns with counts below C32S and increase in the production capacity of T/C 65/35 45S, T/C 60/40 45S and other polyester-cotton blended yarns including T/C 35/65 and other inverse proportion polyester-cotton yarns
However, the situation might not remain intact in long run seeing the USA’s ban of importing cotton from Xinjiang, China. The only satisfactory development for the Chinese cotton mills is that the COVID-19 spread is under full control which has made it possible to get production back on track.