Tongzhou Cotton Market Brief, Week 1 of March 2023

I. Zhengmian (China's cotton)
(1) Positive Factors
1) As of now, the cotton target policy for the new year has not yet been determined. Coupled with the significant increase in planting costs this year, cotton farmers' willingness to plant in the new year has weakened.
2) Recently, the market temperature has risen rapidly. The clothing consumption of residents was delayed earlier due to the weather. With the rise in temperature, it is expected that orders will increase.
3) There is a possibility of a rush to harvest in the new year. From the overall situation, the imbalance of supply and demand remains unchanged, and cotton ginning factories are profitable this year, so there is still a possibility of a rush to acquire cotton in the next year.
(2) Negative Factors
1) The important goals of the Two Sessions have been achieved, but they did not exceed market expectations and remain "steady" growth. There will be no strong stimulus policies in the short term.
2) Currently, we are in a stage of strong reality and weak expectations. It is understood that due to the follow-up orders connecting with fabric mills, some fabric mills in Guangdong have reduced their production.
3) Yarn mills, fabric mills, and traders have stocked up raw materials to normal levels, and there is no strong follow-up stocking drive.
II. American Cotton
(1) Positive Factors
1) According to the World Meteorological Organization's forecast, the probability of El Niño occurring from April to June is only 15%, which means that the drought in Texas will not be significantly alleviated during the key planting window.
2) Currently, raw material inventories in Southeast Asia have fallen to low levels, and previously high-priced inventories have been depleted. With the recovery of demand, the demand for American cotton has increased.
3) The US retail sales of clothing in January increased steadily year-on-year and month-on-month. In January, clothing retail sales were $267.39 billion, a year-on-year increase of 6.28% and a month-on-month increase of 2.52%.
(2) Negative Factors
1) Last week, India's cotton listing volume reached a peak this year, with an average daily listing volume of 164,000 bales, compared with 81,000 bales during the same period last year. Speculation about reduced production in India has weakened.
2) Yarn transactions in Vietnam and Bangladesh have weakened in the latest week, and follow-up orders in Southeast Asia are not smooth, showing signs of weakening.
3) Currently, there is sales pressure on new Australian and Brazilian cotton, which will also increase the sales pressure on American cotton.
 
Focus: Domestic terminal order situation

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Tongzhou Cotton Market Brief, Week 2 of March 2023

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Tongzhou Cotton Market Brief, Week 4 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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