Tongzhou Cotton Market Brief, Week 1 of August 2023

I. Zhengzhou Cotton
(A) Positive Factors
1) The amount of cotton released from reserves is at the lower end of market expectations. The policy measures are less than the market anticipated and cannot effectively replenish the shortage of physical goods.
2) The operating rate of downstream yarn mills is declining slowly and remains high, with low inventory levels.
3) Given the uncertain expectations of reduced production and rush harvests in the new year, the supply side will tighten in the new year.
(B) Negative Factors
1) The reserve release policy has been implemented, and the policy ceiling has been reached. The government's attitude shows a restraint on further cotton price increases.
2) With the opening of the import window, a large amount of imported yarn is expected to arrive in August and September.
3) As the peak season approaches, it is expected that traders' huge inventories will be digested first, because yarn mill finished goods inventories will continue to accumulate in August, and the operating rate will further decline.
II. American Cotton
(A) Positive Factors
1) In the past month, the US has experienced high temperatures and droughts, with the severity and proportion of drought increasing. Texas faces the risk of increased abandonment of crops.
2) The long-term low operating rate in Southeast Asia may be broken in the fourth quarter.
3) The net long positions of funds have increased significantly month-on-month, rising by 10 percentage points to 20%.
(B) Negative Factors
1) In August, the US cotton-producing areas are expected to receive rainfall.
2) Global cotton consumption is still in the destocking cycle. Brazilian, Australian and US cotton still face significant sales pressure.
3) After US cotton rose above 84 cents, upward hedging pressure has significantly increased.
Points to Watch: Weather; Reserve Releases

previous：

Tongzhou Cotton Market Brief, Week 2 of August 2023

next：

Tongzhou Cotton Market Brief, Week 4 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