The new cotton has begun to be collected from the middle of August in Wuwei of Anhui Province, and the purchase price has risen from 5.0 yuan/kg to 5.4 yuan/kg during the last ten days of August.
Currently, cotton with a gin turnout of 38% and moisture around 10% has a purchase price of 5.8 yuan/kg. When converted to lint, the cost will exceed 13,800 yuan/ton (including processing costs). The lint cost is very close to the current spot price of grade-3 cotton.
Anhui gins are blaming the rise on Henan and Shandong gins, who have rushed to the province to buy what they perceive as cheap cotton.
