Tongzhou Cotton Market Brief, Week 5, May 2023

I. Zhengmian (China's cotton)
(I) Positive Factors
1) Currently, the temperature in Xinjiang is still low, which is unfavorable for cotton growth, and supply-side disruptions remain.
2) The probability of harvesting in the new year is relatively high, and the enthusiasm of cotton gins in Xinjiang remains unabated.
3) Currently, the first-hand sources in the market have basically been transferred, and the market lacks hedging pressure.
(II) Negative Factors
1) The domestic economy is sluggish, CPI remains below 1%, and residents lack confidence in consumption.
2) This week, signs of weakening downstream demand have intensified, downstream yarn mills' finished goods inventories have accumulated faster, and the production and sales rate has fallen significantly.
3) Recently, imported yarn has arrived in large quantities, increasing the supply of domestic cotton yarn and exacerbating the arrival of the off-season.
II. American Cotton
(I) Positive Factors
1) Recently, there has been excessive rainfall in the US cotton-producing areas, resulting in waterlogged soil and delayed planting progress.
2) With a noticeable change in global weather patterns, the El Niño phenomenon will delay the Indian monsoon season, which is unfavorable for Indian cotton planting.
3) The US apparel cycle is expected to end destocking in the fourth quarter and gradually enter the restocking cycle.
(II) Negative Factors
1) In April, the US PCE increased by 4.4% year-on-year, exceeding market expectations, and the core PCE increased by 4.7% year-on-year. Inflation is higher than market expectations, and the market expects a 60% probability of another 25 basis point interest rate hike in June.
2) As of April, exports from India, Vietnam, Bangladesh, and Pakistan remain negative year-on-year and month-on-month, indicating sluggish global apparel consumption.
3) The sales progress of Brazilian and Australian cotton is slow, putting competitive pressure on American cotton sales.
Points to note: Weather

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Tongzhou Cotton Market Brief, Week 1 of June 2023

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Tongzhou Cotton Market Brief, Week 4 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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