Tongzhou Cotton Information Brief, Week 4 of October 2023

I. Zhengmian (China's main cotton variety)
(1) Positive Factors
1) Currently, futures prices are far below the acquisition cost. As the 01 contract approaches, it will become increasingly unfavorable for short positions. Future convergence of spot and futures prices will drive upward price movements.
2) Based on this year's production reduction, Xinjiang's cotton planting area is likely to be further controlled by the government next year, leading to an overall market shift towards balance or even tightness.
3) Domestic consumption has bottomed out and rebounded. With the easing of macroeconomic policies, we are optimistic about consumption in the new year.
(2) Negative Factors
1) In recent months, the influx of imported cotton yarn has continuously impacted the domestic supply side.
2) Currently, yarn mills and yarn traders are lowering prices and selling off inventory, but this hasn't effectively reduced inventory levels. In the off-season, the massive inventory in this sector will need to be cleared through negative feedback.
3) The government is tightening financing-related trade, which is unfavorable for yarn traders to maintain their current high inventory levels. The withdrawal of funds necessitates price reductions for yarn.
II. US Cotton
(1) Positive Factors
1) As the government continues to release cotton reserves, the need to purchase foreign cotton to replenish stocks will increase.
2) As destocking continues, data from many listed companies show that inventories have returned to normal levels. It is expected that Europe and the US will gradually enter a restocking cycle at the beginning of next year.
3) With the intensification of the Israeli-Palestinian conflict, crude oil prices have risen sharply, making it easier for general commodities to increase in price and difficult to decrease.
(2) Negative Factors
1) Weak downstream demand. US cotton above 85 cents is completely unacceptable in the Southeast Asian market, making US cotton uncompetitive.
2) US cotton faces fierce competition from Brazilian and Australian cotton.
3) Orders from end users in Europe and the US remain weak, and high interest rates suppress the demand for restocking by end users.
 
Points to Note: Xinjiang's acquisition price

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Tongzhou Cotton Market Brief, Week 5 of October 2023

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Tongzhou Cotton Market Brief, Week 3 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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