Tongzhou Cotton Market Brief, Week 5 of October 2023

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) Currently, the futures price is far lower than the acquisition cost. As the 01 contract approaches, it becomes increasingly unfavorable for short positions, and future convergence of spot and futures prices will drive price increases in the market.
2) In the case of a serious inverted market, the lack of warehouse receipts in the future is also a problem.
3) Domestic consumption has bottomed out and rebounded. Under the condition of loose macroeconomic policies, we are optimistic about consumption in the new year.
(2) Negative Factors
1) In recent months, imported cotton yarn has arrived in concentrated batches, continuously impacting the domestic supply side.
2) This week, the willingness of yarn mills and yarn traders to reduce prices and sell off has intensified, but the production-sales ratio continues to decline, and the accumulation of finished goods inventory in yarn mills has intensified, and the contradictions in the downstream have not been resolved.
3) The country's financing trade is gradually tightening, which is not conducive to yarn traders continuing to maintain their current high inventory levels. The withdrawal of funds has led to a necessary price reduction in yarn.
II. US Cotton
(1) Positive Factors
1) As the national reserve continues to release cotton reserves, it will be necessary to purchase foreign cotton to replenish inventories in the future.
2) As destocking continues, data from many listed companies show that inventories have returned to normal levels, and it is expected that Europe and the US will gradually enter a replenishment cycle at the beginning of next year.
3) Prices in some Indian states are below the Minimum Support Price (MSP), and the Cotton Corporation of India (CCI) has begun purchasing.
(2) 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) End-user orders in Europe and the US remain weak, and high interest rates suppress the demand for end-user inventory replenishment.
Focus: Xinjiang acquisition price
 

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Tongzhou Cotton Market Brief, Week 2 of November 2023

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Tongzhou Cotton Information Brief, Week 4 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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