Tongzhou Cotton Market Brief, Week 1, January 2023

I. Zhengmian (China Cotton)
(1) Positive Factors
1) Offline consumption in major first-tier cities gradually recovered during the New Year's Day period, with a significant increase in the number of people dining out, watching movies, and traveling, indicating a gradual recovery in consumer spending.
2) After this round of phased destocking, yarn mills' inventories are at a double low, with both raw materials and finished products at their lowest levels in the same period of history. Downstream mills have high expectations for a post-holiday "small spring" market, and there is still the driving force and demand for inventory replenishment.
3) The operating rate of downstream yarn mills has gradually recovered this week, with recovered personnel returning to work, and the impact of the epidemic on factories has decreased.
(2) Negative Factors
1) Recently, with China's opening up nationwide, we must guard against a second peak of infection caused by the XBB variant from abroad. If a second infection occurs in a short period of time, consumption activities may stagnate again.
2) As the Spring Festival approaches, fabric and dyeing mills have indicated that they will start to shut down for the holiday around January 10, ending pre-holiday production activities.
3) The market generally expects a "small spring" market after the Spring Festival. If expectations are not met and a second outbreak of the epidemic occurs, cotton prices will be under downward pressure.
II. American Cotton
(1) Positive Factors
1) Currently, the US labor market remains very strong, with an estimated job growth of about 4 million this year, and wage inflation is also quite strong, meaning that consumption has maintained a certain resilience.
2) As of early January, the volume of cotton listed in India has not yet picked up, with daily listings less than 110,000 bales. Indian production has become a potential minefield.
3) Fund net longs have been cautiously bullish in recent weeks, with the latest fund net long ratio rising by 2 percentage points to 10%.
(2) Negative Factors
1) US apparel retail sales in November were $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 terminal apparel sales continued to decline.
2) Brazilian and Australian cotton are under sales pressure. If Indian supply increases later, it will put pressure on American cotton.
3) US wholesale apparel inventories are at their highest level in 30 years, both in absolute terms and year-on-year growth rates. US apparel terminal inventories face at least 7 months of destocking.
Focus: Progress of Indian cotton listings
 

previous：

Tongzhou Cotton Market Brief, Week 2 of January 2023

next：

Tongzhou Cotton Market Brief, Week 4 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.

Details

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.

Details

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.

Details

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.

Details

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

Sorry，当前栏目暂无内容!

您可以查看其他栏目或返回 首页

Sorry，The current column has no content!

You can view other columns or return Home