Demand for cotton yarn and fabric has reduced drastically in past three weeks, as consumers are hoping to witness a significant drop in prices in near future, when they can grab major stocks.
Several traders registered around 30-40 percent drop in sales last month with mills stacking up unsold stocks.
This scenario has been prevailing as the domestic prices are persistently falling, especially the high-end yarns that witnessed a decline from 24,500 yuan in early October to around 23500 yuan per ton.
However, lower-count yarn prices seem to be slowly picking up and balancing.
Though polyester products have recorded steady sales, the cotton price deflation has noticeable gaining advantage.
