Tongzhou Cotton Market Brief, Week 3 of July 2023

I. Zhengmian (China's main cotton variety)
(1) Positive factors
1) Currently, there are limited spot resources, and imported cotton cannot replenish the domestic market in time, resulting in low end-of-period inventory.
2) This week, Xinjiang is experiencing high temperatures, especially in Aksu, where 38-degree Celsius temperatures are expected to last for five days. High temperatures are starting to have a greater impact on the market.
3) The overcapacity of cotton ginning has led to expectations of rush harvesting. Although the situation has cooled down compared to 2021, rush harvesting will still be initiated if there are only processing profits or prices are low.
(2) Negative factors
1) Except for China, the output of major cotton-producing countries globally has increased year-on-year in the new year. From a global perspective, supply has increased year-on-year.
2) With the participation of supply chain finance, cotton yarn traders are storing more and more cotton yarn, leading to accumulating contradictions.
3) Xinjiang cotton, with the highest price globally, is currently at a relatively high price compared to its own level. Under the continued impact of the Xinjiang ban, Xinjiang cotton lacks a competitive advantage.
II. US Cotton
(1) Positive factors
1) US cotton has fallen below 80 cents, and downstream buyers have shown interest.
2) Rainfall has been less than usual in the Texas region over the past month, and the drought index has risen. Be wary of the negative impact of high temperatures and low rainfall in July and August on yields.
3) The export value of garments from Bangladesh and Vietnam has increased month-on-month for two consecutive months, indicating a slight recovery in overseas garment demand.
(2) Negative factors
1) Global supply growth is favorable; there are no major issues with recent weather and rainfall in India, the US, and Xinjiang.
2) Global cotton sales, both ongoing and presales, have been poor, marking the slowest sales progress in recent years.
3) Interest rate hikes have led to severe foreign exchange losses in Southeast Asian countries, and a shortage of US dollars has made it impossible to issue letters of credit, severely impacting the actual purchasing power of Southeast Asian countries for US cotton.
Focus: Weather

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Tongzhou Cotton Market Brief, Week 4 of July 2023

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Tongzhou Cotton Market Brief, Week 2 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.

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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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