Tongzhou Cotton Market Brief, Week 1 of June 2023

I. Zhengmian (China's cotton futures contract)
(I) Positive factors
1) Xinjiang warehouse inventory decreased beyond expectations, causing market panic. While unverified in the short term, this provides a narrative for the market.
2) The supply side is very sensitive this year, with unusual weather patterns causing immediate market reactions to any issues.
3) Ginneries are concerned about the risk of rush harvesting and consider buying long positions in the market to hedge against this risk.
(II) Negative factors
1) The current import tariff of 1% puts the price at 16648, fully opening the import window. Imported cotton will impact market supply.
2) Spinning mills are experiencing rapid short-term profit losses, and orders are not effectively following through, exacerbating negative feedback from downstream.
3) Beware of policy risks, such as government cotton reserves release, that could cause a rapid decline.
II. US Cotton
(I) Positive factors
1) Macroeconomic debt concerns are being addressed, leading to a short-term improvement in market sentiment and a rebound in domestic commodities.
2) With significant changes in global weather patterns, the El Niño phenomenon will delay the Indian monsoon season, which is unfavorable for Indian cotton planting.
3) Forward futures prices are attractive to spot traders, prompting them to buy on dips.
(II) Negative factors
1) The US economy still shows resilience, but the negative effects of interest rate hikes are long-lasting, and the US economy is entering a recession.
2) To date, rainfall in Texas has exceeded expectations, and the abandonment rate is expected to decrease further, potentially increasing US cotton production.
3) Brazilian and Australian cotton sales are slow, creating competitive pressure on US cotton sales.
 
Focus: Weather
 

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Tongzhou Cotton Market Brief, Week 2 of June 2023

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Tongzhou Cotton Market Brief, Week 5, 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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