Chinese domestic cotton prices remain very soft. The average spot price of T328 has declined to a new low for the year of 13,472 yuan per ton (89.47 U.S. cents per pound). Prices in certain provinces are even more depressed. Merchants are aggressive sellers of the Xinjiang consignment stocks now held in eastern locations. The most assertive offers are of Xinjiang Grade 3 non-PCC cotton, which are now offered in Jiangsu at 13,500 yuan per ton, down 150 yuan per ton (approximately one cent per pound) below week-ago levels. This also represents a 300-yuan per ton (approximately two cents per pound) discount to PCC ginned and classed cotton. PCC cotton is HVI classed, low contamination, 480-pound bales and higher uniformity.
China: Domestic Price Recap
Average Landed-the-Mill Prices
Grade
Yuan per Ton
U.S. Cents per Pound
T129
14,130
93.66
T229
13,873
91.96
T328
13,472
89.47
T428
12,963
85.93
T527
12,247
81.18
Chinese local cotton is currently cheaper than imported cotton after VAT and import taxes. Indian roller-ginned Shankar-6 cotton now in consignment stocks is offered landed the mill at 13,850 yuan per ton (91.80 U.S. cents per pound), which is a 350-yuan per ton (approximately 2.32 U.S. cents per pound) premium to the locally stored Xinjiang non-PCC cotton. U.S. and other growths have larger premiums.
