Tongzhou Cotton Market Brief, Week 3 of November 2023

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) This year's major cotton buyers are characterized by dispersed acquisition resources. Large buyers' acquisition resources are half of last year's, and the dispersed acquisition resources are conducive to strengthening the willingness to support prices.
2) With the inverted market, future warehouse receipts are also a problem. As of now, warehouse receipts and valid forecasts only total 110,000 tons.
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) National financing trade is gradually tightening, which is not conducive to yarn traders continuing to maintain the current high inventory. There is a risk of yarn defaults before the end of the year.
2) If there is no channel replenishment demand for domestic sales next year, and at least 400,000 tons of existing cotton yarn needs to be digested, then the domestic supply and demand will be loose.
3) European and American clothing is still in an active destocking cycle, and it still needs to go through a passive destocking process before entering the replenishment cycle. Therefore, the export situation in the first half of next year is not optimistic.
II. American Cotton
(1) Positive Factors
1) With the continuous release of national reserves, it will be necessary to purchase foreign cotton to replenish inventories in the future.
2) With the significant reduction in production of American cotton, the price has fallen to around 77 US cents, and downstream still has some price demand.
3) From the year-on-year perspective of wholesaler inventory, the destocking cycle in the United States is indeed nearing its end.
(2) Negative Factors
1) The replenishment cycle in Europe and America is difficult to start while the global PMI remains below the boom-bust line.
2) Southeast Asia remains sluggish with no demand. The situation in Southeast Asia is worse given the decline in Chinese demand.
3) Recent US employment and economic data are gradually verifying the logic that the US may enter a recession next year.
Focus: Possibility of yarn defaults

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Tongzhou Cotton Market Brief, Week 4, November 2023

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Tongzhou Cotton Market Brief, Week 2 of November 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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