Tongzhou Cotton Market Brief, Week 4 of April 2023

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) According to research, Xinjiang's planting area is expected to decrease by 10%, coupled with low temperatures this year, which is unfavorable to yield, the expected decrease in output is 15%.
2) Consumption is steadily recovering in the second half of the year, and it is expected that the domestic market will be in a destocking pattern in the new year.
3) The enthusiasm of ginneries for contracting remains high in the new year, and the reduction in production is expected to intensify the rush for harvesting in the new year.
(2) Negative Factors
1) The latest announced commercial inventory in March was 5.07 million tons, the highest since 2015, indicating significant supply-side pressure.
2) Spinning mills remain pessimistic about the second quarter and adopt a just-in-time approach to raw materials.
3) Inventories of spinning mills have gradually accumulated recently, and as the downstream enters the seasonal off-season, there is a risk of inventory accumulation of finished products in spinning mills.
II. US Cotton
(1) Positive Factors
1) The market expects that May will be the last interest rate hike by the Federal Reserve, and the policy will shift in the second half of the year, which the market believes is the beginning of a new round of large increases.
2) The Cotton Association of India lowered India's cotton production by 170,000 tons to 5.15 million tons in April, and India's end-of-year inventory is at a historical low.
3) The current shipping progress of US cotton is normal, and it is expected that the export task this year will be over-fulfilled.
(2) Negative Factors
1) Recent dismal economic data from the United States indicate that the risk of recession is increasing.
2) US cotton sales pressure is high, with 327,000 tons of new-year US cotton accumulated contracts, the worst sales situation in nearly five years.
3) Climate scientists believe that the triple La Niña has ended, and El Niño is about to arrive, which will benefit rainfall in Texas.
Focus: Xinjiang planting progress
 

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Tongzhou Cotton Market Brief, Week 1 of May 2023

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Tongzhou Cotton Market Brief, 3rd week of April 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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