Tongzhou Cotton Market Brief, Week 4 of December 2022

I. Zhengmian (China's main cotton variety)
(1) Positive Factors
1) It is expected that the first batch of recovered employees will return to work this week and next, and the shortage of downstream employees is expected to ease in the future, and the operating rate is expected to steadily recover.
2) With the continuous development of the epidemic, first-tier cities have taken the lead in reaching their peak, and offline consumption by residents is expected to recover, with the service and leisure industries performing particularly well, and consumption bottoming out and rebounding.
3) Currently, the new cotton warehouse receipts are still less than 120,000 tons. As the epidemic dissipates, inspections and warehousing are once again affected, and the risk of "soft forced warehousing" still exists.
(2) Negative Factors
1) Xinjiang's expected output is 6 million to 6.2 million tons, a historical high, exceeding the market's previous expectations on the supply side.
2) The terminal clothing market has been severely affected by the epidemic, and the operating rate has dropped sharply. As the Spring Festival approaches, dyeing plants have gradually stopped production, and pre-festival terminal orders are difficult to improve.
3) As of the latest data, the cotton yarn inventory of textile mills has been replenished to above the historical average level. This replenishment has come to an end, and the momentum for replenishment will be insufficient before the Spring Festival.
II. US Cotton
(1) Positive Factors
1) The US labor market remains extremely hot, with an estimated employment increase of about 4 million this year, and wage inflation is also quite strong, meaning that consumption has maintained a certain resilience.
2) As of the end of December, the listing volume in India has not yet picked up, with a daily average listing volume of less than 120,000 bales, making Indian production a potential minefield.
3) After entering January, the market has gradually begun to pay attention to cotton planting in the next year. Currently, the price ratio of cotton to other agricultural products is too low, which is not conducive to planting in the next year.
(2) Negative Factors
1) US retail clothing sales in November totaled $26.35 billion, down 0.2% from the previous month and up 0.7% from the same period last year. After adjusting for inflation, US retail clothing sales continued to decline.
2) A large number of breaches of contract occurred in US cotton last week, and the signing progress has changed from the fastest in nearly five years to the fourth fastest in nearly five years. As the weekly signing of US cotton slows down in the later period, the signing progress will further decline.
3) US wholesale clothing inventories are at their highest levels in 30 years, both in absolute terms and in year-on-year growth rates, and US clothing terminal inventories are facing at least nine months of destocking.
Focus: Progress of Indian cotton listings
 

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Tongzhou Cotton Market Brief, Week 1, January 2023

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Tongzhou Cotton Market Weekly Report, Week 3 of December 2022

Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance

Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance

On March 3, Wang Yongqing, Vice President of Xiamen CNOOC Group, visited Tongzhou Group for investigation and guidance. Wei Gangmin, Chairman of our company; Huang Hongyu, President; Li Tao, Vice President; and Zhang Zhiyan, Director of the General Office, met with and participated in a symposium.

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Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance
Tongzhou Cotton Market Brief, Week 1 of March 2025

Tongzhou Cotton Market Brief, Week 1 of March 2025

1) This week's National People's Congress and the Chinese People's Political Consultative Conference (NPC & CPPCC) in China boosted market expectations for steady growth. In February, the Purchasing Managers' Index (PMI) for manufacturing stood at 50.2%, up 1.1 percentage points from the previous month, indicating a significant improvement in the manufacturing sector.

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Tongzhou Cotton Market Brief, Week 1 of March 2025
In 2024, China's exports of dyed and printed fabrics to Vietnam and Bangladesh increased significantly.

In 2024, China's exports of dyed and printed fabrics to Vietnam and Bangladesh increased significantly.

In 2024, China's dyeing industry saw rapid export growth to ASEAN and RCEP member countries, exceeding the overall export growth rate. However, this growth was accompanied by a decline in prices. From January to December, China's exports of eight major dyeing products to ASEAN totaled 7.908 billion meters, a year-on-year increase of 12.14%, 4.61 percentage points higher than the overall export growth rate, accounting for 23.58% of total exports. The average export price was US\$1.19 per meter, a year-on-year decrease of 2.75%, 0.64 percentage points lower than the overall decline. Exports to RCEP member countries totaled 8.431 billion meters, a year-on-year increase of 11.35%, 3.82 percentage points higher than the overall export growth rate. The average export price was US\$1.17 per meter, a year-on-year decrease of 2.79%, 0.60 percentage points lower than the overall decline.

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In 2024, China's exports of dyed and printed fabrics to Vietnam and Bangladesh increased significantly.
President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

On February 28, Mr. Huang Hongyu, President of our company, was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference and, as a guest speaker at the "Xiangshan Roundtable," shared his views on the cotton market and trading opportunities.

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President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

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