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Compact Yarn is a type of yarn that is produced using a compact spinning method, which is a newer and advanced spinning technique developed in the late 20th century. Compact yarns are yarns with a special spinning technique, where the fibers are twisted into a very small twisting triangle, which eliminates fibers. This new yarn structure gives compact yarns better strength, better stretch, and less hairiness compared to conventional ring-spun yarns.

In the compact spinning process, the fibers are twisted and drawn simultaneously, which reduces the amount of hairiness and fiber protrusion from the yarn. This results in a smoother and more even yarn with fewer fiber ends protruding from the surface. Compact yarn (highly twisted) also pills less than loose yarn (with low twist).

Compact yarn is used in various textile applications, including high-quality knitwear, fine woven fabrics, and denim fabrics. It is often made from long staple fibers such as cotton, wool, and silk, but can also be made from synthetic fibers.