Most downstream mills delay the restart time affected by the novel coronavirus and cotton traders have started offering prices from Feb 3, but sales are unfavorable.

Uncertain restart time of downstream plants
Most downstream mills plan to restart the operation from Feb 10, but due to the various policies in different regions, and the limited migrant workers, the overall resumption is uncertain. After the holiday, a few mills have purchased some feedstock from traders, but the buying interests are not high overall.

Expectation: mills that plan to revise up the yarn prices previously may change their idea and revise lower the yarn prices after the holiday. But ZCE cotton yarn futures have recovered somewhat after the slump on the first day returning from the Spring Festival holiday, after cotton yarn sales recover, cotton yarn prices may edge lower, and the decrement is supposed to be not large.