Can cotton linter recovery last long

There is improving market sentiment with the relaxing of China's pandemic prevention and control policy. Cottonseed price is picked up slightly but stays at a relatively high level. Cotton linter sales warm up with rising offers and trading prices as well.

Market participants have become more confident and ginners are eager to keep firm prices. Recently, both cotton and cottonseed prices of China are warming up as cotton 3128 has risen by 200yuan/mt to 14,300yuan/mt and cottonseed from Hebei and Shandong increases by 100yuan/mt to 3,660yuan/mt.

Downstream companies are resuming operation and logistics are gradually recovering. Coupled with the intention of building up stocks for the coming Chinese Lunar New Year, there have been more enquires for cotton linter since the end of Nov. Offers have slightly improved and offers as well as trading prices are moving up. Cotton linter for industry-grade refined cotton is around 3,600yuan/mt in Xinjiang nad 4,200yuan/mt in Chinese inland, rising by around 200yuan/mt from the lower point.

Although there is improvement of cotton by-product market, more COVID-19 infections are expected to emerge with the approach of New Year’s Day and Spring Festival and experts predict that it may take 3-6 months to overcome the new wave of epidemic, so the recovery of cotton linter will be slow.