Tongzhou Cotton Market Brief, Week 1 of July 2023

I. Zhengzhou Cotton
(I) Positive Factors
1) Recent RMB depreciation has increased the import cost of US cotton.
2) Spinning mills are still profitable in actual production, and cotton consumption remains in the short term.
3) The market believes that the amount of cotton released from reserves may be less than expected, and the structure of the cotton released from reserves cannot meet market demand.
(II) Negative Factors
1) Under the pressure of deflation in the domestic economy, domestic consumer spending is not optimistic.
2) Regardless of the quantity or structure of the cotton released from reserves, it has increased market supply compared to before.
3) Currently, some cotton gins in Xinjiang are considering hedging a small amount of 01 contracts at high prices.
II. US Cotton
(I) Positive Factors
1) Currently, US cotton has fallen below 80 cents, and downstream buyers are interested.
2) The actual planting area of US cotton in June was 11.087 million acres, a decrease of 2% from the March intended area and a decrease of 19% year-on-year.
3) India and Southeast Asia saw a month-on-month increase in clothing exports in May. We should pay attention to the end of the US destocking cycle in the third quarter.
(II) Negative Factors
1) Global supply is growing well, and there are no major contradictions in the recent weather and rainfall in India, the United States, and Xinjiang.
2) The cumulative signing volume of new US cotton is 480,000 tons, the worst signing performance in the past five years, and demand remains weak.
3) Interest rate hikes have led to serious capital outflow from Southeast Asian countries, and dollar shortages have made it impossible to issue letters of credit, seriously affecting the actual purchasing power of Southeast Asian countries for US cotton.
Focus: Weather

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Tongzhou Cotton Market Brief, Week 2 of July 2023

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Tongzhou Cotton Market Brief, Week 4 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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