Affected by a lack of orders and high inventory of grey fabric, factory production enthusiasm is generally low. Most factories plan to shut down for holidays after mid-January, leading to a continuous decline in the operating rate of the weaving industry after the New Year. According to statistics, as of January 4, the average operating rate of domestic cotton textile weaving was 41.05%, down 0.98% month-on-month.

PriceSeek's analysis of cotton yarn shows a bearish score of -1.5. The article indicates that the lack of orders and high inventory of grey fabric have resulted in low production enthusiasm among cotton textile weaving factories. Most factories plan to shut down after mid-January, and the operating rate has continued to decline after the New Year, dropping to 41.05%, a decrease of 0.98% month-on-month. This reflects significant weakness in downstream demand, leading to reduced procurement of cotton yarn and exerting strong downward pressure on spot prices of cotton yarn.

Combined with the cotton yarn futures market, although recent contracts such as 2603 (settlement price 20,630 yuan/ton, up 65 yuan) and 2605 (settlement price 20,710 yuan/ton, up 140 yuan) have shown stability or gains, the continuous weakening of demand is expected to pose a risk of price correction in the futures market, with an overall bearish outlook.