Tongzhou Cotton Market Brief, Week 1 of February 2023

I. Zhengmian (China's Cotton Futures Contract)
(I) Positive Factors
1) Positive market sentiment, with spot prices leading the rise. The 3128B index rose to 15963, and futures prices are converging towards spot prices.
2) Downstream yarn mills have low inventories, and with the gradual recovery of downstream operating rates, there is still a demand for yarn mills to replenish their stocks.
3) The epidemic has subsided, and the clothing industry is entering the traditionally strong March and April sales period. The market remains optimistic about future consumption.
(II) Negative Factors
1) The supply and demand balance sheet for the 22/23 season in China shows a surplus, with ample supply this year.
2) The recent deterioration of Sino-US relations, coupled with the Xinjiang ban and destocking in the US market, has led to a continued decline in domestic clothing exports.
3) The rapid increase in chemical fiber production capacity in recent years has gradually shown a substitution effect.
II. US Cotton
(I) Positive Factors
1) As of now, India's cotton listing progress is still 31% behind the same period last year, and the slow progress has raised market concerns about supply.
2) The US cotton planting intention survey for next year will be released this week. A reduction of 10%-20% is expected, supporting long-term contracts.
3) Compared with cotton from other countries, US cotton still offers the highest cost-effectiveness.
(II) Negative Factors
1) On Friday, the US non-farm employment data significantly exceeded expectations, and the market is refocusing on the Federal Reserve's continued interest rate hikes; the previous logic of slowing interest rate hikes has finished trading.
2) US terminal clothing inventories remain at a historic high, and the destocking cycle is far from complete.
3) The US's aggressive interest rate hikes have led to liquidity crises in some countries, with Southeast Asian countries facing foreign exchange shortages, limiting imports of US cotton.
 
Focus: Domestic consumption
 

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Tongzhou Cotton Market Brief, Week 2 of February 2023

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Tongzhou Cotton Market Brief, Week 4, 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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