Tongzhou Cotton Market Brief, Week 1 of May 2023

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) Recent supply-side tensions are prominent. Strong winds in parts of Xinjiang in the past few days have damaged cotton fields to some extent, and there will still be strong winds, temperature drops, rain, snow, and sandstorms in the southern Xinjiang basin in the future.
2) On the first day of the May Day holiday, clothing sales increased by nearly 21% year-on-year, showing a bright performance.
3) From the perspective of cotton's own valuation, it has already reached above the median valuation, but its valuation is still relatively low compared to other agricultural products. Coupled with the improvement of its own fundamentals in the new year, it is a good variety for allocation.
(2) Negative Factors
1) With the arrival of the traditional off-season, downstream operating rates are gradually decreasing, yarn mills' inventories are accumulating slightly continuously, and the off-season characteristics of the downstream are obvious.
2) The margin call ends tonight, and the margin will return to normal, which is conducive to the counterattack of short positions.
3) Currently, the spot import price difference is flat. US cotton spot has an import advantage. Considering the impact of the Xinjiang ban, some are considering buying foreign cotton and selling domestic cotton.
II. US Cotton
(1) Positive Factors
1) It is reported that US cotton below 80 cents is still competitive and will encourage some purchases.
2) In the latest week, US cotton contracts totaled 48,000 tons, an increase of 20,000 tons compared to the previous week, and weekly shipments totaled 95,000 tons, an increase of 35,000 tons compared to the previous week. It is expected that the contract target will be exceeded this year.
3) Due to the flat domestic and international price difference, US cotton has opened an import window relative to Zhengmian, and the market has recently started to inquire about US cotton prices.
(2) Negative Factors
1) Recently, the US economy is deeply mired in banking and debt crises, and bulk commodities are under pressure as a whole.
2) The weather in Texas has been humid in recent days, and it is expected that the drought will still improve slightly this week and will not worsen.
3) The net long position of funds decreased by 6 percentage points to -3% month-on-month, and funds are bearish on US cotton.
 
Focus: Xinjiang weather
 

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Tongzhou Cotton Market Brief, Week 2 of May 2023

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Tongzhou Cotton Market Brief, Week 4 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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