Reserve cotton auctions have maintained a 100% clearance rate for six consecutive weeks, with the final week of August averaging 17,463 yuan per ton, continuing an upward trend. This price signal reflects the urgent need for stable raw material supply among textile mills and a structural shortage expectation for high-grade cotton.
Market Performance: Volume and Price Rise, Bidding Frenzy Continues
From August 24 to 28, 40,100 tons of reserve cotton were offered, and all were sold. The weekly average price reached 17,463 yuan per ton, equivalent to 18,172 yuan per ton on the 3128 standard. The average premium was 1,184 yuan per ton. Xinjiang cotton averaged 17,413 yuan, while imported cotton averaged 17,482 yuan, a gap of less than 70 yuan, indicating that quality matters more than origin.
Since the program began on July 20, cumulative sales reached 240,684 tons, all cleared, with an average price of 17,264 yuan per ton and an average premium of 1,434 yuan. Imported cotton consistently commanded a higher premium (1,562 yuan) than Xinjiang cotton (1,147 yuan), underscoring its irreplaceability in spinning high-count yarns.
Industry Impact: Regional Concentration and Demand Resilience
By purchaser location, Shandong, Hubei, and Jiangsu accounted for 21,000 tons, or 52.34% of the weekly total. This concentration is no coincidence—Shandong and Jiangsu are textile powerhouses focused on high-count yarn and home textiles, requiring consistent quality. Hubei has expanded capacity through industrial transfers, boosting its procurement appetite.
What does full clearance mean? Downstream orders remain resilient, supporting restocking. Inventory levels are manageable, and mills cannot afford supply gaps ahead of peak season. The premium, though narrower than in early July, still exceeds 1,000 yuan, signaling cautious optimism about future prices—if mills were bearish, they would not bid so aggressively.