On August 18, reserve cotton sales again closed with a 100% turnover rate, with the average price reaching 17,323.65 yuan/ton, up 70.35 yuan/ton from the previous trading day. This marks the latest in a series of fully subscribed auctions since the current release program began, with cumulative sales surpassing 176,000 tons. At a time when the textile industry is transitioning between traditional low and peak seasons, the bidding data deserves careful interpretation by upstream and downstream enterprises.
Bidding Data Analysis
The planned release of 8,050.5370 tons was fully sold, with the highest price at 18,070 yuan/ton and the lowest at 16,990 yuan/ton. Although the price range narrowed slightly, the overall price center continued to move upward. Notably, the price gap between imported and Xinjiang cotton widened further: imported cotton averaged 17,439.72 yuan/ton, while Xinjiang cotton averaged 17,134.67 yuan/ton, a difference exceeding 300 yuan/ton. When converted to the 3128B standard, the gap expanded to roughly 370 yuan/ton.
In terms of bidding premiums, imported cotton saw an average premium of 1,352.11 yuan/ton, while Xinjiang cotton recorded 981.28 yuan/ton. The stronger premium for imported cotton indicates that market demand for imported fiber remains robust, likely due to its consistency, spinnability, and specific order requirements from some mills. This structural price difference directly impacts the cost structures of mills using different raw materials.
Cumulative Sales and Market Signals
As of August 18, the cumulative listed volume in this round reached 176,407.1080 tons, all sold, with an average price of 17,184.84 yuan/ton, equivalent to 17,821.72 yuan/ton on a 3128B basis, and an average premium of 1,499.51 yuan/ton. The cumulative high of 19,370 yuan/ton and low of 16,060 yuan/ton, a spread exceeding 3,300 yuan, reflects significant differences in bids across batches and quality levels.
Imported cotton cumulative average price stood at 17,343.01 yuan/ton (3128B: 17,982.61 yuan/ton) with an average premium of 1,661.72 yuan/ton; Xinjiang cotton cumulative average was 16,853.98 yuan/ton (3128B: 17,485.17 yuan/ton) with a premium of 1,160.20 yuan/ton. The cumulative premium for imported cotton exceeded that of Xinjiang cotton by about 500 yuan/ton. If this trend persists, it may prompt some mills to reassess their raw material mix strategies.
The 100% turnover rate reflects a concentrated release of restocking demand from textile enterprises. On one hand, with new cotton not yet on the market, concerns about short-term supply persist; on the other hand, although downstream orders have not shown explosive growth, rigid demand continues to support raw material consumption. The high participation in bidding suggests that mills accept current price levels, and also hints at expectations of further price increases in the future.
Industry Impact and Operational Advice
The sustained high turnover of reserve cotton provides support to the spot cotton market, but there is a risk that rapid price increases may squeeze mill profits. The widening gap between imported and Xinjiang cotton may lead some enterprises to increase the proportion of imported cotton, thereby affecting the domestic cotton consumption structure. At the same time, high premiums reflect the scarcity of high-quality fiber, prompting mills to strike a balance between quality and price in procurement.