In the past week, with the rise of ICE futures, the quotation basis of various varieties has begun to weaken. This may be related to the limited demand of textile mills, but the main reason is that cotton merchants are more willing to sell inventory than before to avoid pressure on margin.

　　 At present, the situation of the yarn market is difficult to conclude. In the past more than a month, the global yarn market has strengthened whether it is a supply problem or a demand factor. In general, after inventory consumption and factory shutdowns in the second and third quarters of last year, yarn stocks in countries around the world are tight, and yarn prices in many countries have risen by 10-15% since the new year.

According to the analysis of foreign institutions, the vaccine injection has triggered a rebound in retail and wholesale demand, and the market expects that yarn transactions in the second quarter of 2021 will become normal, which surprised many spinning mills in various countries because the yarn supply is very tight at this time and affected by the epidemic. It is also difficult for restricted factories to restart production lines that have stopped production.

　　 At present, terminal demand has not returned to the level before the epidemic, but the impact of the epidemic has been amplified by the tight supply of downstream terminal manufacturing. However, although it takes 6 months from cotton planting to harvest, yarn production does not take that long. As countries begin to accelerate procurement, it does not take long for yarn stocks to increase.