Tongzhou Cotton Market Brief, Week 4 of March 2023

I. Zhengzhou Cotton
(I) Positive Factors
1) The industrial chain is operating well, and orders are continuously postponed. The relatively low price of Zhengzhou cotton is conducive to the healthy circulation of the industry. Currently, the finished goods inventory of yarn mills is low, and profits are good. Orders can be maintained until mid-April. Recently, some yarn mills have reported that orders have been postponed again, extending to May.
2) The valuation of cotton futures and spot is relatively low, and it has investment value in the medium and long term. If cotton prices continue to fall, the investment value will continue to increase. The industry indicates that if cotton prices fall, both futures and spot will increase, leading to long-term investment.
3) There is still a possibility of rush harvesting next year. With the increase of domestic "water release", the available funds in the market have increased, coupled with the serious overcapacity of cotton ginning plants, there is still a possibility of rush harvesting in the new year.
(II) Negative Factors
1) China may face deflationary pressure, with the domestic CPI falling to 1%, showing technical deflation.
2) There are signs of weakening in the actual operation of downstream industries. The finished goods inventory of yarn mills has increased for two consecutive weeks, and yarn prices have fallen.
3) The operating rate of textile mills has declined significantly, especially in the Zhangcha area, where the operating rate has fallen by 10 percentage points.
II. US Cotton
(I) Positive Factors
1) From the perspective of agricultural product price ratios, US cotton is at its historically lowest level compared to corn and soybeans, which is not conducive to cotton planting next year.
2) From the perspective of the spot market, US cotton has the highest cost-effectiveness compared to cotton from other countries.
3) The US cotton planting intention report will be released this Friday. Since the end of February, US cotton has experienced a sharp drop, and it is expected that the reduction in planting area will be greater than that of the February outlook forum.
(II) Negative Factors
1) The world has entered the "transition to recession" stage. In the past month, agricultural products represented by beans have entered the main downward trend first, and the overall bulk commodities will face pressure in the future.
2) Demand in India and Southeast Asia is weakening. In the latest week, both India and Pakistan have seen a decline in operating rates and a drop in yarn prices.
3) The net long position of funds continues to decline. As of the latest week, the proportion has fallen by 5 percentage points to -6%.
 
Focus: US cotton planting intention report
 

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Tongzhou Cotton Market Brief, Week 1 of April 2023

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Tongzhou Cotton Market Brief, Week 3 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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