Tongzhou Cotton Market Brief, Week 3 of February 2023

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) Macroeconomic factors: The domestic policy for the whole year is to focus on economic development, and strong policies are expected to be introduced in the first half of the year. Current order observations also concentrate on the first half of the year.
2) Recently, yarn mills have been operating at full capacity, with low finished product inventories. Large textile factories did not stock up much before the new year, and their stocking intentions are very strong after the new year.
3) Due to weather conditions this year, temperatures have been relatively low, and spring clothing consumption has not changed significantly in the short term. With the rise in temperature, expectations remain for the peak sales seasons in March and April.
(2) Negative Factors
1) Recently, two new variant strains have been added, and many students in two classes in Hangzhou have a fever, causing market concerns about a second wave of infections. Market sentiment should be watched carefully.
2) Downstream clothing orders are below expectations. Market feedback on the recovery strength is inconsistent. Yarn mill follow-up orders are not smooth, and the peak sales seasons in March and April may be missed.
3) Imported yarn inventories increased by 0.4 million tons week-on-week, and imported yarn will gradually arrive in ports after the end of February, increasing domestic supply.
II. US Cotton
(1) Positive Factors
1) Indian cotton prices have been strong recently, increasing the competitiveness of US cotton.
2) The price ratio of US cotton to other agricultural products has fallen to its historical lowest level. At the key window for planting, the current price ratio is not conducive to next year's planting.
3) The operating rate in Southeast Asia has stabilized and recovered, and immediate profits have recovered to near the break-even point.
(2) 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 be under pressure.
2) US terminal apparel inventories remain at historically high levels, and the destocking cycle is far from complete.
3) The drought in US cotton fields has been continuously alleviated recently. It is expected that the drought in the Texas region will be significantly alleviated by the end of April, and US total output is expected to increase year-on-year.
 
Points to Note: Domestic terminal order conditions

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Tongzhou Cotton Market Brief, Week 4 of February 2023

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Tongzhou Cotton Market Brief, Week 2 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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