Tongzhou Cotton Market Brief, Week 2 of September 2023

I. Zhengmian (China's cotton futures contract)
(A) Positive factors
1) The spot basis remains relatively firm, and yarn mills' raw material inventories are not high.
2) A small amount of cotton from Bachu is being sold at 9.5-9.8 yuan per kilogram, and the current purchase price is still around 9 yuan. The purchase price will not drop significantly in the short term.
3) The downstream Guangdong market has gradually improved recently, and the operating rate of dyeing and garment factories has increased.
(B) Negative factors
1) The postponement of cotton reserve sales, coupled with the formal use of quotas, has continuously increased the supply-side increase, and the future supply and demand pattern will continue to loosen.
2) Consumption is likely to decline next year because this year's channel inventory, especially yarn traders, has accumulated a lot of inventory.
3) Under the circumstances of declining factory costs this year and losses downstream, the bullish sentiment on cotton harvesting is not optimistic.
II. US Cotton
(A) Positive factors
1) Heavy rainfall is expected in Texas over the next week, affecting the progress and grade of US cotton harvesting. US cotton production is affected again.
2) Recently, Christmas orders from Europe and the US have been placed, and the operating rate of the Bangladesh market has increased, increasing raw material inventories.
3) Due to long-term sluggishness in overseas markets, inventories at all levels are low, and there is potential for restocking in the future.
(B) Negative factors
1) Weak downstream demand. US cotton above 85 cents is completely unacceptable in the Southeast Asian market, and US cotton has no competitiveness.
2) US cotton faces fierce competition from Brazilian and Australian cotton.
3) Orders from European and American end users remain scarce, although they have improved recently, but the sustainability is questionable.
Focus: Xinjiang cotton procurement

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Tongzhou Cotton Market Brief, Week 3 of September 2023

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Tongzhou Cotton Market Brief, Week 1 of September 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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