Tongzhou Cotton Market Brief, Week 1 of December 2023

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) Last week, some large acquisition companies entered the market at a fixed price to purchase cotton, which had a certain impact on the market and boosted the confidence of the bulls.
2) Towards the end of the year, textile mills need to prepare some raw material inventory. Now that yarn prices have fallen to a low level, yarn inventory is gradually being passed down.
3) Last week, the operating rates of textile mills in Zhangcha and Nantong areas increased, and the yarn price gradually fell out of cost-effectiveness, leading to some improvement in downstream demand.
(2) Negative Factors
1) The overall cotton inventory in Qingdao port has reached over 350,000 tons, with almost every warehouse full. A large amount of imported cotton will arrive in December.
2) The volume of warehouse receipts registered and forecasted has increased significantly. Currently, the warehouse receipts plus forecasts total 190,000 tons, and further increases are expected.
3) Downstream yarn shipments have slightly improved, but the overall trend of actively destocking remains unchanged.
II. US Cotton
(1) Positive Factors
1) There is no pressure on US cotton sales. With 35 weeks remaining, signing 25,000 tons per week can achieve the sales target.
2) With a significant reduction in production, US cotton prices have fallen to around 77 cents, and downstream demand still exists to some extent.
3) From the year-on-year perspective of wholesaler inventory, the US destocking cycle is indeed nearing its end.
(2) Negative Factors
1) The restocking cycle in Europe and the US is difficult to start as the global PMI remains below the boom-bust line.
2) Recently, the volume of US cotton sales has been declining continuously. Last week's sales fell to 50,000 tons, and China is no longer the largest buyer, indicating that state reserve purchases may be nearing completion.
3) Last week, yarn prices in India and Pakistan fell by nearly 1000 yuan, and operating rates also declined, indicating that overseas market demand continues to fall.
Points to Watch: Sustainability of downstream improvement; Friday's monthly report

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Tongzhou Cotton Market Brief, Week 2 of December 2023

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Tongzhou Cotton Market Brief, Week 4, 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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