Tongzhou Cotton Market Brief, Week 2 of August 2023

I. Zhengmian (China's Cotton)
(1) Positive Factors
1) Downstream improvement is gradually occurring. With the arrival of autumn and winter orders, the operating rate of textile mills is rising, and downstream profits have improved.
2) Following last week's price fixing transactions, the resources of traders are becoming increasingly scarce, and the market's spot supply remains tight in the short term.
3) Under the conditions of reduced production, ample liquidity, and improved fundamentals in the new year, the early harvest cannot be falsified.
(2) Negative Factors
1) A large number of imported cotton yarns will arrive in the future, increasing the supply pressure.
2) Downstream orders have improved recently, but year-on-year feedback remains poor, falling short of normal levels in previous years.
3) Since March of this year, the market has been trading on the expectation of an early harvest, with severe preemptive buying. It is highly likely that the subsequent early harvest will fall short of expectations.
II. US Cotton
(1) Positive Factors
1) Since late July, the Texas region has been experiencing high temperatures and drought. High temperatures affect flower bud pollination and boll formation. Texas will continue to experience high temperatures, and production is expected to be affected.
2) The long-term low operating rate in Southeast Asia may be broken in the fourth quarter. For example, Bangladesh currently has extremely low cotton inventories.
3) The US apparel destocking cycle is expected to end in the fourth quarter of this year.
(2) Negative Factors
1) Weak downstream demand. US cotton is completely unacceptable above 84 and 85 cents, and lacks competitiveness.
2) US cotton faces fierce competition from Brazilian and Australian cotton.
3) On August 4, some customer deposits disappeared from Wells Fargo, and banking crises and the recent downgrade of the US credit rating by Fitch are gradually emerging as US macroeconomic problems.
Focus: Sustainability of downstream orders; monthly report

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Tongzhou Cotton Market Brief, Week 3 of August 2023

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Tongzhou Cotton Market Brief, Week 1 of August 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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