Tongzhou Cotton Market Brief, Week 4 of June 2023

I. Zhengmian (China's cotton futures contract)
(A) Positive Factors
1) Weather disturbances persist. As we enter July, we need to closely monitor whether sustained high temperatures will negatively impact cotton growth throughout the month.
2) Given the tight supply of physical cotton, a significant price drop in the futures market may present a buying opportunity.
3) With currently low capital costs and ample liquidity, ginneries may once again engage in aggressive buying.
(B) Negative Factors
1) Be wary of market policy adjustments suppressing cotton prices, such as cotton reserve releases or increased quota allocations.
2) The weakening downstream market is intensifying; some yarn factories have directly reduced production or indirectly lowered their production capacity by adjusting yarn counts.
3) The price difference between domestic and international cotton remains relatively high. Profitable import of yarn puts pressure on the domestic market supply.
II. US Cotton
(A) Positive Factors
1) With US cotton prices falling below 80 cents per pound, downstream buyers are showing interest.
2) Due to the lack of rainfall in Texas over the past two weeks, coupled with high temperatures, the quality of US cotton has declined. With no rain forecast for Texas in the coming week, be wary of potential market speculation driven by weather concerns.
3) Southeast Asia has low overall raw material inventories. If the US cotton replenishment cycle begins, Southeast Asia will urgently need to quickly replenish its raw material stocks.
(B) Negative Factors
1) The macroeconomic environment is tightening again. Last Wednesday, Powell reiterated that the pause in rate hikes in June was a temporary measure and did not indicate that the Federal Reserve has completed its rate-hiking cycle.
2) Cumulative new-crop sales of US cotton stand at 450,000 tons, the lowest in five years, reflecting continued weak demand.
3) Interest rate hikes have led to significant foreign exchange losses in Southeast Asian countries, and coal shortages are hindering the issuance of letters of credit, severely impacting the actual purchasing power of Southeast Asian countries for US cotton.
Key Focus: Weather

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Tongzhou Cotton Market Brief, Week 1 of July 2023

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Tongzhou Cotton Market Brief, 3rd week 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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