Tongzhou Cotton Market Brief, Week 4 of August 2023

I. Zhengzhou Cotton
(I) Positive Factors
1) Currently, the basis of Zhengzhou cotton is at a historically high level, with excessive contango.
2) The operating rate of spinning mills has not decreased on a large scale, and monthly cotton consumption has not changed significantly.
3) Under the conditions of reduced production, ample liquidity, and improved fundamentals in the new year, the rush harvest cannot be falsified.
(II) Negative Factors
1) Xinjiang's cotton production is higher than expected. Recent surveys of Xinjiang's cotton production show a significant improvement in the overall growth situation compared to April and May, leading to an upward revision of production expectations.
2) Recently, imported cotton yarn has continued to arrive at ports, and domestic cotton yarn traders also have huge inventories, raising the possibility of future inventory explosions.
3) Since March this year, the market has been trading on the expectation of a rush harvest, resulting in significant front-running, and it is highly likely that the subsequent rush harvest will be less than expected.
II. US Cotton
(I) Positive Factors
1) The August monthly report significantly reduced US cotton production by 550,000 tons to 305, and after two consecutive years of reduced production, the end-of-year inventory of US cotton is at a relatively low level.
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.
(II) Negative Factors
1) Weak downstream demand; US cotton is completely unacceptable above 84 and 85 cents in China and lacks any competitiveness.
2) US cotton faces fierce competition from Brazilian and Australian cotton.
3) Funds have shown no significant interest above 85 cents; recently, net long positions of funds decreased by 1 percentage point to 18%.
Focus: Sustainability of downstream orders
 

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Tongzhou Cotton Market Brief, Week 1 of September 2023

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Tongzhou Cotton Market Brief, Week 3 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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