As the traditional off-season of the textile industry gradually comes to an end, the most sluggish stage in the early market has passed. The domestic cotton yarn market is now experiencing a subtle change in its pattern. As downstream sample orders are being released one after another, the inventory levels of yarn factories have continued to decline. The industry's mindset has been somewhat restored, but the terminal picking-up pace is still weak, and substantial large orders have not yet concentratedly emerged. The market is still in a transitional stage of weak recovery, and it will take time to verify whether it will fully recover. 

From the inventory data of the production end, after a period of order digestion, the spot inventory of domestic yarn factories has been steadily declining. The industry's average inventory has dropped to around 30 days, and the inventory pressure of some production enterprises has further eased, dropping to within 30 days. The decline in inventory reflects that the pressure of previous accumulation has been somewhat released, and it also indicates that downstream customers have increased sample making and small-batch trial orders. Some popular varieties have already shown order cycles of 20-30 days or more, which to some extent indicates that the demand for certain varieties has improved.

However, behind the positive signals there are still concerns. According to feedback from several yarn factories, although the customer order behavior has increased, the actual picking-up speed of the customers who have placed orders is still relatively slow. Many orders remain at the order stage, and the goods' outflow and circulation are not as expected. This reflects that downstream weaving enterprises still remain cautious and dare not carry out large-scale stockpiling, mostly adopting an operation mode of "use as needed and purchase as needed". From the production end, the current yarn factory's operating rate is generally maintained at around 80%, and the industry's operation remains relatively stable. There are no large-scale production cuts or shutdowns. In terms of prices, the quotations of the cotton yarn market remain stable. Under the support of inventory decline and cost, yarn factories generally have a willingness to hold firm prices and are reluctant to easily lower the selling prices. The market mainly operates in a stable manner.

Recently, the Shanghai Textile Exhibition was successfully held, becoming a major highlight of the current cotton yarn market. After the exhibition started, the activity level of industry exchanges significantly increased. Most exhibitors stated that during the exhibition period, the number of customer inquiries increased significantly, and the communication between upstream and downstream was significantly increased. To seize potential customers, many exhibitors launched various marketing discount measures to attract customers' attention. Some cotton yarn manufacturers offered a price reduction of around 200 yuan per ton during the exhibition, and some enterprises chose to offer preferential policies in terms of logistics freight. Through various means, they offered discounts to attract customers.

However, the enthusiastic inquiries do not equate to actual transactions. Currently, the actual orders brought by the exhibition are still limited, and a large number of them remain at the intention communication stage. The follow-up of actual orders still needs to be continuously tracked and observed. The enthusiastic inquiries and weak actual orders are exactly the true reflection of the current textile market: there is an expectation of recovery, but the actual consumption driving force of the terminal is still insufficient, and the market has not yet witnessed a concentrated outbreak of orders.

Now the market is approaching the traditional "Golden September and Silver October" peak season of the textile industry. The entire industry generally holds expectations for the future. After the adjustment in the previous off-season, both upstream and downstream merchants are looking forward to the release of downstream orders in the autumn and winter, which is expected to drive the entire cotton yarn industry to recover upward. Logically speaking, as the production preparation cycle for autumn and winter clothing fabrics arrives, downstream weaving enterprises are expected to gradually increase raw material purchases, which will then be transmitted to the upstream cotton yarn link, bringing an increase in market demand.