Tongzhou Cotton Market Brief, Week 1 of April 2023

I. Zhengzhou Cotton
(I) Positive Factors
1) Macroeconomic disturbances boost the domestic market. On Sunday evening, several oil-producing countries led by Saudi Arabia announced voluntary production cuts, and crude oil opened 6.4% higher this morning.
2) The current consumer demand remains strong, yarn mills are profitable, orders are generally maintained until the end of April, finished product inventory is low, and the current operation is good.
3) Cotton valuation is relatively low, and there are currently no major contradictions in the fundamentals. If cotton falls sharply, there will be strong long-term investment buying support.
(II) Negative Factors
1) Downstream consumption shows signs of weakening. The operating rate in Zhangcha region has been declining for two consecutive weeks, and yarn mill finished goods inventory has been slightly accumulating for three consecutive weeks, indicating a gradual weakening of downstream demand.
2) Exports in the second quarter have not yet improved. On the one hand, there is no relaxation of policies from the United States, and on the other hand, the destocking cycle of clothing in Europe and the United States is still ongoing in the second quarter.
3) The pricing of upstream first-hand cotton has loosened somewhat. After the rebound of futures in the last cycle, the mentality of ginning factories holding first-hand cotton has changed, and they are eager to ship the goods.
II. US Cotton
(I) Positive Factors
1) Macroeconomic disturbances boost the domestic market. On Sunday evening, several oil-producing countries led by Saudi Arabia announced voluntary production cuts, and crude oil opened 6.4% higher this morning.
2) As of last week, the US cotton has reached its signing target, with 58% of shipments completed. Based on the normal weekly shipment level in previous years, US cotton can achieve its export target.
3) The area of drought in US cotton-growing regions increased slightly week-on-week last week. Persistent high temperatures and strong winds have further deteriorated soil moisture conditions in Texas, and the trend of increasing extremely and exceptionally dry areas in Texas is difficult to reverse.
(II) Negative Factors
1) The banking crisis exposes the possibility that the US crisis may not be over. It is reported that nearly 186 banks in the US face a similar situation to Silicon Valley Bank, and the US economic problems need to be watched out for.
2) According to the March US cotton planting intentions report, the year-on-year decrease is 18%, lower than market expectations. The main decrease is in Texas, where production is greatly affected by the weather. The market estimates that the weather in Texas will improve significantly before June, so the harvested area may exceed expectations.
3) The proportion of long positions held by funds in US cotton is still negative, meaning that funds do not consider cotton as an over-allocated commodity.
Things to watch: Weaving mill operating rate
 

previous：

Tongzhou Cotton Market Brief, Week 2 of April 2023

next：

Tongzhou Cotton Market Brief, Week 4 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.

Details

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.

Details

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.

Details

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.

Details

President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

Sorry，当前栏目暂无内容!

您可以查看其他栏目或返回 首页

Sorry，The current column has no content!

You can view other columns or return Home