The outbreak of the Coronavirus (COVID 19) in China will undoubtedly weaken demand for imported yarn. At present, weavers in various regions are slowly returning to work, especially large-scaled ones, but the small and medium-sized are still shut down. Although spinners in various regions have announced plans to resume work, there are still restrictions on transportation and delivery delays. Downstream weavers have not yet fully resumed work. The stagnation of logistics has led to the accumulation of goods by traders. In addition, the market demand is uncertain. Trading will be thin for some time. Domestic traders plan to quote up after the holidays. At the same time, with reference to international cotton and cotton yarn prices and exchange rates, imported yarn prices may continue to be weak.

The increase in forward imported yarn prices before the holidays was much larger than that in cotton prices, mainly due to China’s regular replenishment from Vietnam and Pakistan. Traders in Bangladesh and Egypt continued to purchase Indian yarn. Carded, combed and open-end yarn prices were weak this week. The profit of Vietnamese yarn mills fell after the holidays, and now it fluctuates near the breakeven level. For forward yarn suppliers, China’s stagnant procurement has been a problem.