Recently, with the warming weather, the originally cold cotton yarn market has warmed up, as the number of orders has improved than that in March, and downstream consumption has raised CFZX to a certain extent.

It is reported that the peak season of the cotton textile industry is not prosperous this year, especially in March the number of orders is low. Not only the sector of spinning is in a state of loss, but the new orders are also insufficient. Some textile companies said that if the number of orders does not improve in April, they will consider reducing the rate of start-up. Entering April, textile orders have picked up, mainly as the temperature rises, enterprises actively purchase raw materials to produce summer clothing, and this situation is relatively common.

The recovery of downstream consumption led to the rise in CFZX price. The current CF2405 contract price has been close to 16200 yuan/ton, with entering the period of Xinjiang cotton recovery, on the basis of increased consumption, which might help CFZX further go upward. Despite the improvement in orders, textile enterprises are still cautious in purchasing, buying on demand, and the inventory scale has always maintained the rigid-demand level of cotton requirements.

Although the price of CFZX rose greatly recently, the futures price of cotton yarn fell instead, and the price spread of cotton and cotton yarn continued to expand, indicating that the cotton yarn inventory of downstream textile enterprises and traders is still too large. In March, there were fewer new orders, with some yarn branches showing accumulated stock, leading to weak yarn prices, and new orders increased in April, with cotton yarn inventories expected to decline.