Tongzhou Cotton Market Brief, Week 2 of May 2023

I. Zhengmian (China's cotton futures contract)
(I) Positive factors
1) Low temperatures in Xinjiang over the past half-month have affected sowing and germination rates, which has indeed impacted the supply side. Currently, single-crop yield remains a concern.
2) Downstream raw material and finished product inventories are currently low, and actual production remains profitable.
3) Some hedging positions in the downstream industry have not been priced, and future offsetting of positions will provide upward momentum.
(II) Negative factors
1) The weather in Xinjiang has warmed up this week, with temperatures rising to around 20 degrees Celsius, rendering previous speculation based on low temperatures invalid.
2) Entering May and June, the downstream sector enters its off-season, and the operating rate of spinning mills gradually decreases.
3) As prices rise, high-priced cotton from the 21/22 season is gradually being released to the market, increasing market supply.
II. American Cotton
(I) Positive factors
1) The banking crisis has temporarily eased, and the better-than-expected April non-farm employment data has eased market concerns about a recession.
2) India's end-of-season inventory is at a historical low. If output is further reduced this year, India's supply and demand will be very tight next year.
3) Due to the flat difference between domestic and international prices, the import window for American cotton relative to Zhengmian has opened, and the market has recently begun to inquire about American cotton prices.
(II) Negative factors
1) The United States is facing a debt ceiling issue, and the debt crisis has not yet eased.
2) The weather in Texas has been humid in recent days, and drought is expected to improve slightly this week without worsening.
3) The net long position of funds decreased by 1 percentage point to -4% month-on-month, indicating that funds are bearish on American cotton.
 
Focus: US CPI on Wednesday of this week

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Tongzhou Cotton Market Brief, Week 3 of May 2023

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Tongzhou Cotton Market Brief, Week 1 of May 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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