According to the commodity market analysis system of Business Society, the cotton market experienced wide fluctuations this week. Driven by rising costs, spinning enterprises continued to raise their quotations, with the spot price of pure cotton yarn increasing by approximately 200-400 yuan/ton. As of January 9, the spot price of 21S pure cotton ring-spun yarn in Shandong, China, was around 22,250 yuan/ton, up 0.91% from the previous week. The spot price of 32S pure cotton ring-spun yarn was around 23,600 yuan/ton, up 1.07% from the previous week.

Market Analysis:
Cotton prices surged significantly, squeezing the costs of spinning enterprises. This week, pure cotton yarn prices continued to rise, with quotations increasing by approximately 200-400 yuan/ton. However, downstream buyers adopted a wait-and-see attitude, resulting in limited actual transactions. Product differentiation became more pronounced, with demand for medium- and high-count cotton yarns remaining favorable. Spinning enterprises received limited new orders and primarily processed previous orders, maintaining stable operations.

Operating Conditions:
This week, yarn prices rose significantly, but sales slowed down. Spinning enterprises mainly processed previous orders, and operating rates remained largely unchanged. Inland regions operated at 50-60% capacity, while Xinjiang maintained stable operations at over 90%. As of January 18, the operating load of spinning enterprises in mainstream regions was 64.7%, unchanged from the previous week.

Inventory Situation:
Yarn prices continued to rise this week, but downstream acceptance was limited, leading to reduced transaction volumes. Inland inventory increased slightly, with finished yarn inventory in Xinjiang at approximately 35-40 days and inventory of enterprises in inland regions at around 20-25 days. As of January 8, yarn inventory in spinning enterprises in major regions was 32.6 days, a weekly increase of 0.93%.

Cost Factors:
The cotton market experienced wide fluctuations during the week, with domestic cotton remaining stronger than international cotton. The market continued to strengthen amid expectations of reduced cotton planting areas. However, cost pressures on downstream spinning enterprises weighed on market performance, leading to relatively subdued trading. Spinning enterprises delayed restocking. It is expected that the cotton market will adjust within a range in the near term, with attention focused on recent industry meetings and policy adjustments.

Demand Factors:
The fabric market continued to show weak differentiation. Orders for weaving mills were mainly small and short-term, with the overall industry operating rate at around 40%. Product inventory remained high, and while raw material prices were strong, grey fabric prices remained largely stable. According to statistics, as of January 8, the average operating rate of domestic cotton textile weaving was 39.56%, down 1.49% month-on-month.

Future Outlook:
Currently, downstream weaving mills face insufficient orders and are adopting a wait-and-see attitude toward current yarn prices, leading to slow yarn sales. However, with stable operations and increasing inventory pressure, spinning mills may lower prices to facilitate transactions. It is expected that yarn prices will continue to fluctuate in line with cotton prices.