China Cotton Textile Association

Place	Capacity	Time for shut down	Expected time to restart	Holiday reductions compared with last year	Inventory of finished productions	Inventory of feedstock
Fujian	0.5million spindles	13-Feb	22-Feb	0	Out of supply for two weeks
	0.2million spindles	14-Feb	20-Feb	0
	0.63million spindles	15-Feb	18-Feb	-1	0	Able to cover production till end-Jan
	0.28million spindles	13-Feb	20-Feb	0	Out of supply	Able to cover production till mid-Feb
	0.15million spindles	13-Feb	Feb 18-19	0	Out of supply for two weeks	---
	0.27million spindles	14-Feb	20-Feb	0	Out of supply for two weeks	Self-sufficiency
	0.1million spindles	15-Feb	21-Feb	0	Out of supply for 20 days	Able to cover production till end-Feb
Jiangxi	0.3million spindles	12-Feb	20-Feb	0
Jiangxi	0.4million spindles	12-Feb	21-Feb	0	Some specification out of supply for 2-3 days	----
Hebei	0.1million spindles	10-Feb	25-Feb	-7	Out of supply for 2-3 days	Normal replenishment
	0.24million spindles	9-Feb	Feb 24-25	0	Out of supply for 20 days, some specification have to be delivered after the Spring festival	Able to cover production till end-Jan
	0.03million spindles	10-Feb	25-Feb	-7	Out of supply	Able to cover production till end-Jan
Zhejiang	Vortex-spun yarn	6-Feb	26-Feb	0
Zhejiang	Vortex-spun yarn	Around Feb 5	Around Feb 25	---	Slightly out of supply	Able to cover production till end-Jan
Jiangsu	0.1million spindles	11-Feb	21-Feb	0	Out of supply for 20 days	Able to cover production till end-Jan
	0.2million spindles	31-Jan	Feb 23-25	0
	0.1million spindles	10-Feb	23-Feb	0	0	Able to cover production till early Mar
Hubei	Polyester sewing thread	11-Feb	23-Feb	Expected to be 0	Out of supply	Contract cargoes

Holidays still reduce year on year

Like in 2017,spinners shut down for holidays in 2018 still for a shorter period of time, although the reduction concentrated not in Fujian and Hubei, but in Hebei. The major drive was good profits. As workers in Hebei are mainly natives and holidays last relatively long, a reduction of the holiday is feasible. While for spinners in South China, a further decline after last year’s adjustment is unreasonable.

Compared with the same period of 2016(Chinese Lunar Year), spot profits in 2017 trended higher by 100-400yuan/mt and seems to keep expanding by end of the Lunar Year. Thus spinners tried their best to lengthen days for production.

Inventory of finished product low
Most spinners are out of supply, thanks to the market surge in early and mid-Jan. what’s more, on entering the new year, spinners in Fujian and Hubei began to lower run rate and will speed up the cut-down by end of the month. Thus it is unlikely that their inventory will climb in the days to come.

Demand for replenishment before the Lunar New Year still exists
As the holiday approaches, most spinners and traders have finished the replenishment of feedstock for the production before the Lunar New Year. For the feedstock for production after the holiday, some have completed the restock while some are still waiting for the right time given high-standing feedstock price.