Tongzhou Cotton Market Brief, Week 3 of October 2023

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) During the National Day holiday, it was discovered that the reduction in per unit yield during the harvesting process in northern Xinjiang may exceed expectations. The market's estimated yield has been lowered by about 300,000 tons, currently ranging around 500,000 tons, plus or minus 200,000 tons.
2) The price of machine-harvested cotton in Xinjiang is around 8 yuan/kg, equivalent to a cotton cost of 18,000-18,200 yuan/ton. The purchase price will not collapse suddenly in a short period of time.
3) Domestic consumption has bottomed out and rebounded. Under the condition of loose macroeconomic policies, the consumption in the new year is optimistic.
(2) Negative Factors
1) Currently, temperatures have risen across Xinjiang, which is conducive to harvesting. The harvesting progress is expected to accelerate significantly, and the market faces hedging pressure.
2) The policy stance is clear, and continuous reserve releases continue to suppress the market, with supply shifting from tight to loose.
3) Downstream sectors are beginning to deteriorate. Downstream companies indicate that this year's "Golden September, Silver October" performance has been unsatisfactory, and subsequent orders are still uncertain.
II. US Cotton
(1) Positive Factors
1) As the national reserve continues to release cotton, it will be necessary to purchase foreign cotton to replenish inventories in the future.
2) The Northern Hemisphere, including China and the United States, has experienced reduced production, while the Indian market remains uncertain, and Pakistan has reported pest problems.
3) Amidst the escalating Israeli-Palestinian conflict, crude oil prices have risen sharply, and overall bulk commodities are easier to rise than to fall.
(2) Negative Factors
1) Weak downstream demand. US cotton above 85 cents is completely unacceptable in Southeast Asian markets, and US cotton has no competitiveness.
2) US cotton faces fierce competition from Brazilian and Australian cotton.
3) End-user orders in Europe and the US remain scarce, and high interest rates suppress the demand for replenishing inventories.
Focus: Xinjiang cotton purchase price
 

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Tongzhou Cotton Information Brief, Week 4 of October 2023

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Tongzhou Cotton Market Brief, Week 2 of October 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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