Tongzhou Cotton Market Brief, Week 2 of June 2023

I. Zhengmian (China's cotton futures contract)
(I) Bullish Factors
1) Currently, domestic cotton spot inventories are indeed low, and there are not many resources circulating in the market.
2) This year's early temperatures were lower, and cotton growth was about 15 days later than in previous years. It is expected that the listing will be delayed by 15 days this year, exacerbating the tight cotton situation.
3) Based on current domestic and international price calculations, assuming government reserves are released, the low price will not be lower than 16,000 yuan/ton.
(II) Bearish Factors
1) This week, a small number of yarn mills have begun to shut down or limit production, the inventory of finished products is accumulating faster, and the downstream market is entering the off-season.
2) In May, textile and garment exports weakened significantly, with a year-on-year growth rate of -13%, and there was no significant improvement in both domestic and foreign sales.
3) With the strong domestic prices, the import window for cotton yarn has opened, and inquiries for foreign cotton in bonded areas have increased recently.
II. American Cotton
(I) Bullish Factors
1) American cotton has had good signings in recent weeks, especially with China as the main buyer this year. There is a demand for government reserve purchases of American cotton in the short term.
2) With the significant change in global weather, the rainfall in the first week of the arrival of the Indian monsoon was 61% less than in normal years.
3) Futures prices are attractive to spot traders, who are buying on dips.
(II) Bearish Factors
1) US weather is continuously improving. In the June report, the US lowered the cotton abandonment rate from 23% to 16%, and US cotton production is expected to be further increased.
2) The signing progress of the new US crop year is still the worst in the past five years, and there is still pressure on new crop sales.
3) In April, the US imported 1.2 billion square meters of cotton textiles and garments, down 35.7% year-on-year and 3.6% month-on-month, marking the 10th consecutive month of year-on-year negative growth in imports.
Focus: Weather
 

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Tongzhou Cotton Market Brief, 3rd week of June 2023

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Tongzhou Cotton Market Brief, Week 1 of June 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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