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Neps are made up of fibers that are disordered and entangled, and the neps on the yarn is a small tangle of fibers. It is different from the slubs.

How do the neps come out in the finished yarn?

Two reasons, one is in the natural fiber, the other reason is coming out in the process of spinning. For example, in the process of making tube yarn into cone yarn, some fibers tangled by itself forming neps because of friction on the auto-winder and of the fiber itself.