Tongzhou Cotton Market Brief, Week 2 of February 2023

I. Zhengmian (China's Cotton)
(I) Positive Factors
1) According to the latest survey, the national planting area in 2022/23 decreased by 2.2% year-on-year. Coupled with the fact that the target subsidy policy for the next year has not yet been implemented, cotton farmers are uncertain about the planting intentions for the next year.
2) Yarn mills had good orders before mid-March and operated smoothly. Currently, yarn mills have low inventory at both ends, with an immediate profit of nearly 1500, and orders are received on average until mid-March.
3) As of the latest data, the inventory of imported yarn is 54,000 tons, the lowest for the same period in history, and domestic yarn inventory is relatively tight.
(II) Negative Factors
1) In 2023, China's economy emphasizes "stability." If the subsequent policy stimulus is insufficient, market expectations may be disappointed.
2) The supply side is abundant this year. According to the latest survey of national output in early February, the estimated output this year is 6.55 million tons, of which Xinjiang's output is 6.05 million tons, a historical high.
3) Recently, yarn mills have been operating steadily, cooling down somewhat compared to the first week after the festival. There is no momentum for further price increases in yarn, and some yarn mills have even given back some of the price increases, proving that market consumption remains moderate.
II. American Cotton
(I) Positive Factors
1) The National Cotton Council (NCC) released the results of its 2023/24 US cotton planting intentions survey, indicating that the intended planting area for the next year will be 11.419 million acres (equivalent to 69.313 million mu), a decrease of 17% year-on-year.
2) Recently, Southeast Asia has seen improved operations. The high-priced inventory purchased earlier has been largely depleted, and overall profits have returned to near the breakeven point, with yarn mill operating rates rising.
3) Compared to other countries' cotton, American cotton still offers the highest cost-effectiveness.
(II) Negative Factors
1) The US continues to raise interest rates, and the market is reassessing the pressure on the economy from higher terminal interest rates. The US macroeconomy continues to face pressure.
2) US terminal clothing inventory remains at a historical high, and the destocking cycle is far from complete.
3) The drought in the US cotton fields has recently been easing. It is expected that the drought in the Texas region will ease significantly by the end of April, and the total US output is expected to increase year-on-year.
To watch: The situation of domestic terminal orders

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Tongzhou Cotton Market Brief, Week 3 of February 2023

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Tongzhou Cotton Market Brief, Week 1 of February 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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