The burden of destocking cotton yarn is reduced, and textile companies gradually restore production capacity

According to reports from the monitoring station of the National Cotton Market Monitoring System, according to a survey of textile enterprises of different sizes in Anhui Province, the textile situation has improved since mid-October, the destocking of cotton yarn in textile mills has accelerated, and production capacity is gradually recovering.　　 A small textile factory in Anqing had an unforgettable experience in the past six months: After the Sino-US trade upgrade in May, the prices of lint and cotton yarn fell sharply, the sales of cotton yarn were difficult, the inventory gradually increased, the loss of the company increased, and the business confidence was frustrated. In July, in order to cope with the high temperature weather and the textile downturn, the factory took measures to restrict production, changing the production shift from 3 to 2 shifts, and the production capacity was reduced by one-third. In spite of this, cotton yarn inventory is still increasing, and the peak production reached more than two months. In early October, affected by the substantial results of Sino-US trade negotiations, cotton yarn sales in the market improved. This factory seized the opportunity in time and did not dare to increase prices to destock. Nowadays, the inventory of cotton yarn is less than 20 days, and it has returned to the normal inventory level before. Although it is not profitable, the heavy pressure on the enterprise has been significantly reduced. Seeing that the market outlook is expected to improve, the factory has recently changed the production shift from 2 to 3, resuming the previous production capacity.　　 In Anhui, there are many small and medium-sized textile companies that have taken measures to suspend and restrict production in order to deal with difficult business situations. Now the situation is improving, business confidence is gradually increasing, and the production capacity of many companies is gradually recovering. Textile companies generally hope that the Sino-US trade negotiations will eventually have a good result and create a good external environment for the survival and development of the company. Article Keywords: 　Cotton Yarn