Tongzhou Cotton Market Brief, Week 3 of September 2023

I. Zhengmian (China's cotton)
(1) Positive factors
1) This year's cotton growth and development has been slow, coupled with recent low temperatures in Xinjiang. If the low temperatures persist, it will affect the single boll weight and maturity of the cotton.
2) Recently, a small amount of Xinjiang cotton has been purchased, and cotton farmers have a strong willingness to maintain prices, with a strong intention to support prices at 8 yuan/kg.
3) At the end of August, the social inventory of cotton was 2.64 million tons, the lowest level in the past five years. Currently, cotton spot is still relatively tight.
(2) Negative factors
1) Last week, the state reserves began to show unsold lots, and prices also fell accordingly. This shows that as the state reserves continue to be supplied, market sentiment is changing.
2) There are market rumors that yarn traders are starting to sell off their inventory, and the pressure on yarn will continue to increase, with the peak of sell-offs approaching.
3) This year's traditional peak season of "Golden September and Silver October" has fallen short of expectations, and the negative impact on yarn mills continues.
II. American Cotton
(1) Positive factors
1) The USDA September report once again lowered the US cotton production by 190,000 tons to 2.86 million tons, the lowest production in the past five years.
2) Overseas markets have been sluggish since the third quarter of last year, and have undergone a year-long destocking process. The 23/24 season is expected to see an improvement.
3) Recently, the Vietnamese market has also received some export orders, and the overseas market has shown a temporary improvement.
(2) Negative factors
1) Weak downstream demand. American cotton above 85 cents is completely unacceptable in the Southeast Asian market, and American cotton has no competitiveness.
2) American cotton faces fierce competition from Brazilian and Australian cotton.
3) Orders from European and American end users are still lacking. Although there has been some improvement recently, the sustainability is questionable.
Points to watch: Xinjiang's purchase price, low temperatures in Xinjiang

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Tongzhou Cotton Market Brief, Week 4 of September 2023

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Tongzhou Cotton Market Brief, Week 2 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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