A 100% sell-through rate is rare in reserve cotton auctions, and the average price of 16,663 yuan per tonne deserves closer scrutiny. When every tonne of listed supply is snapped up but the price rises only 13.85 yuan from the previous day, it tells us the market is not chasing highs in panic but locking in cost-effective resources based on actual need. The 3128B-equivalent price of 17,449 yuan per tonne is the real cost benchmark mills are working against.
Price stratification within the auction structure
On September 24, 8,005.611 tonnes were listed and fully sold. The highest transaction price reached 17,420 yuan per tonne while the lowest was 16,420 yuan, a spread of exactly 1,000 yuan that reflects clear differentiation in grade, origin and warehouse location across lots. For spinning mills, this spread means there is still room to manoeuvre in cotton blending — using lower-priced resources as a base and higher-grade ones to lift quality indicators remains a viable strategy.
On a cumulative basis through September 24, total listed volume reached 401,691.7451 tonnes with 398,584.7791 tonnes sold, giving a cumulative sell-through rate of 99.23%. The cumulative average price stood at 17,186 yuan per tonne, or 17,845.04 yuan on a 3128B-equivalent basis. The cumulative high was 19,370 yuan and the low 16,010 yuan, with an average premium of 1,147.35 yuan. These figures paint a clear picture: there is virtually no unsold pressure in this round, and demand-side absorption capacity is solid.
The spread logic between imported and Xinjiang cotton
Breaking down by origin, imported cotton fetched a cumulative average of 17,231.17 yuan per tonne, equivalent to 17,896.80 yuan for 3128B. Xinjiang cotton averaged 16,997.17 yuan per tonne, or 17,628.62 yuan on the same basis. The spread of roughly 268 yuan per tonne is relatively narrow, suggesting the price advantage of imported cotton has diminished and that Xinjiang cotton's balance of quality and price is gaining wider acceptance among buyers.
On the single-day front, imported cotton averaged 16,662.82 yuan per tonne, equivalent to 17,448.82 yuan for 3128B, with an average premium of 855.82 yuan. That premium is noticeably narrower than the cumulative average of 1,147.35 yuan, indicating more moderate bidding intensity and more rational buyer behaviour on the day. For procurement teams, this is a marginal shift worth monitoring — if premiums continue to fall, bargaining room in the spot market may open up.
Downstream transmission through the supply chain
Reserve cotton transaction prices serve as a key anchor for yarn pricing. The 3128B-equivalent price of 17,449 yuan per tonne directly influences the floor price for mainstream products such as C32S yarn. When reserve cotton consistently achieves high sell-through rates, mills accelerate restocking, which supports yarn spot prices in the short term but simultaneously squeezes processing margins.
For weaving and fabric segments, the transmission of raw material costs involves a time lag. Export fabric order quotation cycles typically run 30 to 45 days. If cotton prices hold at current levels, fabric quotations will face moderate upward pressure in the fourth quarter. Exporters in particular need to consider whether long-term orders have adequately priced in raw material volatility.
From a regional perspective, spinning clusters in Jiangsu, Shandong and Henan rely heavily on reserve cotton, and changes in average transaction prices will first show up in yarn quotations from these areas. Fabric trading hubs such as Keqiao in Zhejiang and Shishi in Fujian feel the pressure more indirectly through yarn procurement costs.