At the end of December, most textile companies in Hubei Province were operating at a reduced capacity due to frequent power outages. Many garment and grey fabric manufacturers were facing large raw material inventories, which would take time to process. The stock of overlying yarn was particularly severe, putting significant pressure on spinning mills. The weak demand from downstream sectors is expected to persist until the Spring Festival. According to a senior executive at a major grey fabric company in Hanchuan, the backlog of grey fabric stocks at downstream fabric companies has led to a sharp drop in orders. Normally, the company would have 2–3 months of orders, but now it’s only enough for about half a month. As a result, businesses are shifting some orders to conventional production, but sales remain unsatisfactory. Current grey fabric inventory stands at around one month, similar to the same period last year, but this is tying up working capital. It has been reported that from October to November, cotton prices were relatively high, forcing local textile companies to rely heavily on their existing lint inventories. However, since mid-November, cotton prices have dropped sharply, and many companies have been hesitant to buy. As of now, most lint stocks have been depleted, and companies are urgently seeking to replenish their supplies. In recent days, with cotton prices stabilizing, financially strong local firms have started rebuilding their lint inventories in preparation for the New Year and Spring Festival holidays. Some companies have even indicated that they plan to increase their stockpiles until at least March next year. This strategic move reflects growing concerns about future supply chain disruptions and rising demand during the festive season.