Tongzhou Cotton Market Brief, Week 4, January 2023

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) Spinning mills are operating well overall, with good profits, low finished goods inventory, and downstream optimism about the future market.
2) The spot market is strong, with cotton prices increasing by about 300 after the festival, boosting market confidence.
3) The epidemic has subsided, and downstream consumption is recovering. According to the Ministry of Commerce, during the Spring Festival, sales of key retail and catering enterprises nationwide increased by 6.8% year-on-year, with clothing sales up by 6%.
(2) Negative Factors
1) A second wave of the epidemic is expected to break out in March-April, impacting consumer spending during the traditional peak season.
2) The export of textile and garment products in 2023 still faces sustained downward pressure. Although the US has slowed interest rate hikes, inflationary pressure persists in the US, and other countries still have interest rate hike expectations, which negatively impacts demand.
3) Imported yarn is expected to arrive in large quantities in February, resulting in ample supply in the domestic cotton yarn market and reduced cotton consumption.
II. US Cotton
(1) Positive Factors
1) The US announced that the preliminary estimate of real GDP growth in the fourth quarter was 2.9% year-on-year, higher than the 2.6% predicted by economists, indicating that the US economy is still performing strongly.
2) In terms of fund allocation, US cotton is an over-allocated variety, with the net long position increasing by 5 percentage points to 9%.
3) US cotton spot prices of 80-83 cents have high cost-effectiveness and strong competitiveness; if prices fall, there will be a large number of buyers.
(2) Negative Factors
1) The global supply and demand situation for the 2022/23 season is loose, and the US cotton inventory-sales ratio is also above the average level. The fundamentals are relatively loose, which does not support high prices.
2) Due to US interest rate hikes, Southeast Asian countries are experiencing foreign exchange shortages, and letter of credit issues have forced importing countries to reduce their demand for US cotton.
3) US clothing inventory remains high, and the destocking cycle is still ongoing, requiring nearly half a year to complete.
Focus: Domestic Consumption

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Tongzhou Cotton Market Brief, Week 1 of February 2023

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Tongzhou Cotton Market Brief, 3rd week of January 2023

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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