Tongzhou Cotton Market Brief, Week 3 of March 2023

I. Zhengmian (Zhejiang Cotton)
(1) Positive Factors
1) Currently, downstream operations are running smoothly with positive transmission. Yarn mill orders can be maintained until early April, finished product inventories are at low levels, profits are around 1000, and last week's sharp drop in cotton prices increased immediate profit.
2) If the market falls again to around 13700, there will be some price support. Yarn mills have indicated that they will consider long-term stocking if it falls to 13500.
3) In terms of product allocation, cotton is at an absolute low valuation compared to other domestic products, making it a good choice for investment.
(2) Negative Factors
1) Subsequent orders have not been smoothly connected, orders are light after mid-April, and Guangzhou feedback shows that there are signs of production cuts in the past two days, mainly due to the end of summer equipment stocking.
2) After the sharp drop last week, yarn mills actively priced, supplementing part of the inventory in a short time, which has now been replenished to a normal level. If consumption remains sluggish later, there will be insufficient inventory momentum.
3) On the macro level, frequent international financial events have increased market concerns about a hard landing in the US, putting pressure on domestic and international commodities.
II. US Cotton
(1) Positive Factors
1) Observing the weather in Texas, although there has been a significant improvement year-on-year, it is still relatively dry compared to normal years. The focus is on rainfall in Texas in April and May.
2) From the perspective of agricultural product price comparison, the current returns from cotton are far lower than those from planting soybeans and corn, and the planting area of cotton next year will likely decrease.
3) Recent macro events have had a significant impact on commodities, focusing on the Federal Reserve's interest rate meeting in the early hours of Thursday this week. If the statement is dovish, it will be a short-term positive for commodities.
(2) Negative Factors
1) Although Silicon Valley Bank was resolved in a short time, the real problem lies in the potential chain reaction. Economists say that 186 banks in the United States may face risks similar to those of Silicon Valley Bank.
2) The March USDA monthly report increased global production by 160,000 tons and decreased global consumption by 120,000 tons, increasing the inventory-sales ratio by 2 points to 82.8%, further easing the global supply-demand situation.
3) The Southeast Asian market has recently weakened, with operating rates stable and leaning towards weakness, and transactions have become sluggish, with global demand entering the off-season again.
Focus: Financial risks; Federal Reserve interest rate meeting

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Tongzhou Cotton Market Brief, Week 4 of March 2023

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Tongzhou Cotton Market Brief, Week 2 of March 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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