Tongzhou Cotton Market Brief, Week 4 of February 2023

I. China Cotton
(1) Positive Factors
1) The market is currently in the planting speculation stage for the next year. It is rumored that this year, there is a requirement to increase the planting area of grain in Xinjiang, resulting in a decrease in Xinjiang's planting area for the next year.
2) As of now, yarn mill orders can be maintained until the end of March, and finished product inventories remain low and operate smoothly.
3) At the technical level, the 60-day moving average of 14250 serves as a strong support, and there is obvious support below at present.
(2) Negative Factors
1) Entering March, a large number of imported yarns will arrive at ports, coupled with the full-capacity operation of yarn mills in mainland China, the supply of yarn mills is rapidly increasing, and the risk of yarn mill inventory accumulation should be guarded against.
2) The follow-up order connection in the market is not smooth, there are fewer orders in April, insufficient terminal consumption, and the market is still waiting and seeing.
3) The negative impact of the Xinjiang cotton ban is intensifying. European and American companies have limited orders and choose Vietnam and other Southeast Asian countries, with a significant outflow of Chinese orders.
II. US Cotton
(1) Positive Factors
1) The US Department of Agriculture's Outlook Forum first released the supply and demand outlook for the United States and the world in 2023/24, estimating a 21% decrease in the planting area next year and a 6 percentage point decrease in the stock-sales ratio.
2) The price ratio of US cotton to other agricultural products has fallen to its historical lowest level. During the key planting window, the current price ratio is not conducive to next year's planting.
3) US clothing retail sales increased steadily year-on-year and month-on-month in January, with January clothing retail sales reaching $267.39 billion, a year-on-year increase of 6.28% and a month-on-month increase of 2.52%.
(2) Negative Factors
1) The US continues to raise interest rates, and the market is reassessing the pressure brought to the economy by the increase in the terminal interest rate, and the US macro environment continues to be under pressure.
2) Currently, US cotton is close to 85 cents, which is at a historically high price, and it is difficult for high-level operation to continue.
3) Recently, the drought in US cotton fields has been continuously alleviated. It is expected that the drought in the Texas region will be significantly alleviated by the end of April, and the total US production is expected to increase year-on-year.
Focus: Domestic terminal order situation

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Tongzhou Cotton Market Brief, Week 1 of March 2023

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Tongzhou Cotton Market Brief, Week 3 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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