Tongzhou Cotton Market Brief, Week 2 of November 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) With the severe contango in the market, warehouse receipts will also be a problem in the future.
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) As downstream traders compete to lower prices and sell, downstream liquidity stagnates, and even with production capacity restrictions, yarn mills still face an imbalance between production and sales.
2) The European and American apparel industry is still in an active destocking cycle and needs to go through a passive destocking process before entering a restocking cycle. Therefore, the export situation in the first half of next year is not optimistic.
3) National financing trade is gradually tightening, which is not conducive to yarn traders continuing to maintain their current high inventory levels. There is a risk of yarn market collapse before the end of the year.
II. US Cotton
(1) Positive Factors
1) As the national reserve continues to release cotton reserves, it will need to purchase foreign cotton to replenish inventories in the future.
2) With a significant reduction in production, the price of US cotton has fallen below 77 cents, and downstream buyers still have some price demand.
3) In some Indian states, prices are below the Minimum Support Price (MSP), and the Cotton Corporation of India (CCI) has begun to purchase cotton.
(2) Negative Factors
1) Weak downstream demand; globally, only the Chinese market shows demand, while other countries are sluggish.
2) US cotton faces fierce competition from Brazilian and Australian cotton.
3) Orders from European and American end users remain scarce, and high interest rates suppress the demand for end-user restocking.
Points to Note: Possibility of yarn market collapse
 

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Tongzhou Cotton Market Brief, Week 3 of November 2023

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Tongzhou Cotton Market Brief, Week 5 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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