Weekly Report: Textile Demand Increased; Spot Price Stabilized from Earlier Decline

Recently, the improved mill orders encouraged raw material purchase, which stopped earlier domestic cotton price decline. Last week (20th-24th October), the CC Index 3128B witnessed a first rise since the decline started from the middle of August. On 24th, CC Index 3128B settled at 14,768 Yuan/ton, 17 Yuan down over the week. At the same time, seed cotton market price edged upward. The weekly average price in Xinjiang local market is 6.12 Yuan/kilo, 0.27 Yuan up over the week. Opinions mixed toward market outlook, some lowered the maximum price to 6.4 -6.6 Yuan/kilo, expecting the declined price in peak time of machine picking harvest; some kept their maximum price at 6.8-6.9 Yuan/kilo, in want of high quality cotton.
Entering the late of October, the actual daily warehouse delivery is above 50,000 tons, as harvest augmented quickly and seed cotton selling process speed up. By 25th October, cotton ginned in Xinjiang totaled 996,000 tons, with 666,000 tons delivered to warehouses. Currently the main restriction is the unbalanced delivery arrangement from supervised warehouses. China National Cotton Exchange works together with AQSIQ to improve warehouse delivery and inspection efficiency.