Unlikely to get any new orders in the next three months, weavers in China are holding higher inventory compared to the same period last year. High price fluctuation of feedstock and rising inventories of fabric mills are major causes of concern. Orders for cotton grey fabric in China remained bleak in May as weavers had to liquidate previous orders to clear inventory backlog. As per a CCF Group report, weavers did not have any new orders due to low consumer enthusiasm.
Home textile orders remained flat in June, as weavers mainly purchased stocks amid right demand. On June 2, weavers had orders lasting only 5.5 days production, down about half from the same period last year. Fabric plants reported negligible sales while the frequency of orders by regular customers also declined. A few fabric mills extended holidays despite the end of the Dragon Boat Festival. Those mills that resumed production did it on a limited basis.