Tongzhou Cotton Market Brief, Week 1 of September 2023

I. Zhengmian (China's cotton futures contract)
(1) Bullish Factors
1) Currently in the traditional peak consumption season, downstream demand is indeed showing continuous improvement, and overall contradictions between yarn mills and fabric mills are not prominent.
2) Current spot inventory remains relatively tight, and Zhengmian warehouse receipts are at their lowest level in nearly five years; the spot market issue has not eased significantly.
3) New cotton procurement is imminent, and the market and capital remain highly attentive. During the procurement period, there is a risk of renewed market excitement due to rush buying.
(2) Bearish Factors
1) Starting in September, previously ordered imported carded yarn will continuously arrive in ports, leading to a steady increase in domestic carded yarn supply.
2) The policy guidance is clear, suppressing excessive increases in Zhengmian prices. The government adjusts the amount of cotton released from reserves based on price; recently, the daily release has increased to 20,000 tons.
3) Previously, traders stocked up due to expectations of future price increases. During the traditional peak consumption season, they may focus on clearing existing inventories. However, given the continuous influx of imported yarn impacting the domestic market, the reduction of domestic inventories is expected to be difficult.
II. US Cotton
(1) Bullish Factors
1) The US cotton premium and extreme premium rates are at historical lows. Continuous high temperatures in August have worsened US cotton growing conditions, and there is a possibility of further downward revisions to the September report on US cotton production.
2) Recently, Christmas orders from Europe and the US have been placed, and the operating rate of the Bangladesh market has increased, leading to increased raw material inventories.
3) The US apparel destocking cycle is expected to end in the fourth quarter of this year.
(2) Bearish Factors
1) Weak downstream demand. US cotton above 85 cents per pound is completely unacceptable in the Southeast Asian market and lacks competitiveness.
2) US cotton faces fierce competition from Brazilian and Australian cotton.
3) Orders from European and US end-users remain lackluster, although there has been some recent improvement; however, the sustainability of this improvement is questionable.
Focus: Sustainability of downstream orders

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Tongzhou Cotton Market Brief, Week 2 of September 2023

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Tongzhou Cotton Market Brief, Week 4 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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