Tongzhou Cotton Market Brief, Week 2 of July 2023

I. Zhengmian (China's Cotton)
(1) Positive Factors
1) Tight market spot resources, supply remains relatively tight, and spot prices are firm.
2) The weather for the new Xinjiang crop is still uncertain, and the variables on the supply side due to reduced acreage are easily of concern.
3) Currently, yarn mills have low finished goods inventory, the contradiction is not prominent, the operating rate of yarn mills will not decrease significantly, and the monthly cotton consumption will not decrease too much.
(2) Negative Factors
1) Currently, China seems to be facing a "liquidity trap" crisis. On the one hand, residents' income is decreasing, and on the other hand, they lack confidence in the future, making it difficult for residents' consumption to improve.
2) With the participation of supply chain finance, cotton yarn traders are storing more and more cotton yarn, and contradictions are accumulating.
3) Xinjiang cotton, with the highest global cotton price, is currently at a relatively high price. Under the continued impact of the Xinjiang ban, Xinjiang cotton lacks a competitive advantage.
II. American Cotton
(1) Positive Factors
1) American cotton fell below 80 cents, and downstream buyers showed interest.
2) Rainfall in the Texas region has been less in the past month, and the drought index has risen. Be wary of the negative impact of high temperatures and little rain in July and August on yields.
3) Bangladesh's clothing exports in June reached US\$4.361 billion, a year-on-year increase of 6.57% and a month-on-month increase of 7.59%.
(2) Negative Factors
1) Global supply-side growth is good, and there are no major contradictions in the recent weather and rainfall in India, the United States, and Xinjiang.
2) Globally, cotton sales, whether currently ongoing or presales, are performing poorly, representing the slowest sales pace in recent years.
3) Interest rate hikes have led to a serious outflow of foreign exchange in Southeast Asian countries, and tight US dollar liquidity has resulted in the inability to issue letters of credit, seriously affecting the actual purchasing power of Southeast Asian countries for American cotton.
Focus: Weather

previous：

Tongzhou Cotton Market Brief, Week 3 of July 2023

next：

Tongzhou Cotton Market Brief, Week 1 of July 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.

Details

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.

Details

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.

Details

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.

Details

President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

Sorry，当前栏目暂无内容!

您可以查看其他栏目或返回 首页

Sorry，The current column has no content!

You can view other columns or return Home