资讯 1 10 英文网 285 Reserve 568542 Why is reserve sales losing steam? 2017-03-15 16:06:32 yangfang
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Why is reserve sales losing steam?
2017-03-14

First, some buyers have found the actual quality fell below expectation when reserves were received. A buyer from Shandong said some has a pale color and a strength below 27 GPT, which make it difficult for making medium and high count yarns. 

 

Second, this year’s auction began two months earlier than last year. Therefore, it remains to be seen whether a potential supply squeeze would occur in September/October. Also, T3128 reserve is equivalent to a price above 16000 yuan/ton, which is a little bit too high and not an ideal choice for doing physical cotton business.  

 

Third, falling ZCE cotton and cash cotton prices have damaged the buying passion of spinning mills. Many of them said the high auction price may not be sustainable if physical price drops. 

 

All these factors are expected to weigh on auction, which will continue to lose steam for a while.