On September 8, reserve cotton sales again closed with a 100% turnover rate, with an average price of 17,340 yuan per ton, down only 63 yuan from the previous trading day. Behind this seemingly stable data lies a delicate supply-demand balance in the textile raw material market: companies are determined to restock, but price sensitivity is rising.
Understanding the Auction Data
That day, 8,009.78 tons were offered and fully sold. The average price was 17,340 yuan/ton, and the 3128-equivalent price was 17,940 yuan/ton, down 90 yuan from the previous day. Imported cotton prices also declined, with an average premium of 637 yuan/ton, indicating intense but narrowing bidding margins. Since the start of this sales round on July 20, cumulative transactions have reached 296,734.9 tons, with a 100% turnover rate, reflecting stable market absorption.
Industry Impact Analysis
The 100% turnover is not accidental; it mirrors low raw material inventories among textile mills and concentrated restocking demand. Especially before the new cotton harvest, reserve cotton serves as a cost-effective source for large and medium-sized mills to lock in costs. However, the consecutive slight price declines are noteworthy—they imply that downstream yarn prices cannot follow suit, weaving profits are squeezed, and companies' acceptance of high-priced raw materials is nearing its ceiling.
From a supply chain perspective, weather and production expectations in Xinjiang remain long-term variables. If new cotton opening prices are high, reserve cotton's role as a 'ballast' will become more prominent; conversely, if downstream orders remain weak, auction heat may cool by late September. The current premium of 637 yuan/ton has narrowed significantly from earlier peaks, indicating more rational bidding rather than blind chasing.