Tongzhou Cotton Market Brief, Week 4 of September 2023

I. Zhengmian (China's cotton futures contract)
(1) Positive factors
1) Low temperatures and heavy rain in Xinjiang last week, especially affecting the yield and quality in northern Xinjiang, leaving some uncertainty about Xinjiang's total output.
2) The recent opening price for hand-picked cotton in Xinjiang is 9.1-9.4 yuan/kg, providing clear support for the 17000 level in the futures market.
3) Social inventory of cotton at the end of August was 2.64 million tons, the lowest level in the past five years. Currently, cotton spot remains relatively tight.
(2) Negative factors
1) The consumption side showed a significant downturn this week, with yarn mills' production and sales ratio falling sharply, fabric mills' operating rates declining, and inventories accumulating. There are signs that the peak season may be ending.
2) Market rumors suggest that some yarn traders have begun to sell off their inventory, and pressure on yarn will continue to increase, with a potential surge in offloading soon.
3) Some yarn mills have indicated that the National Day holiday this year will last 3-8 days, longer than in normal years, reflecting the difficulties faced by yarn mills.
II. US Cotton
(1) Positive factors
1) The USDA's September report again lowered US cotton production by 190,000 tons to 2.86 million tons, the lowest output in the past five years.
2) Reduced production in the Northern Hemisphere (China and the US), uncertainty in the Indian market, and pest problems reported in Pakistan.
3) The Vietnamese market has recently received some export orders, indicating a temporary improvement in overseas markets.
(2) Negative factors
1) Weak downstream demand. US cotton above 85 cents is completely unacceptable in Southeast Asian markets, making it uncompetitive.
2) US cotton faces fierce competition from Brazilian and Australian cotton.
3) Orders from European and American end-users remain scarce, although there has been some recent improvement, the sustainability of which is questionable.
Points to watch: Xinjiang's acquisition price, low temperatures in Xinjiang
 

previous：

Tongzhou Cotton Market Brief, Week 2 of October 2023

next：

Tongzhou Cotton Market Brief, Week 3 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.

Details

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.

Details

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.

Details

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.

Details

President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

Sorry，当前栏目暂无内容!

您可以查看其他栏目或返回 首页

Sorry，The current column has no content!

You can view other columns or return Home