Tongzhou Cotton Market Brief, Week 2 of December 2023

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) Domestic downstream demand is gradually improving. When the downstream contradiction was most intense, the price fell to 14520 yuan/ton. The price has already reflected the current contradiction, and after the demand has improved for a period of time, the price has begun to rebound.
2) Towards the end of the year, small and medium-sized textile mills need to prepare some raw material inventory to promote cotton yarn liquidity, and yarn inventory is gradually being passed down.
3) Some cotton companies have begun to support spot prices, receiving large quantities of goods at the edge of the spot bottom price. Processing plants have recouped some funds through both post-point pricing and fixed-price sales, and the pressure to repay loans is not great. Time is used to create space, increasing confidence in future price increases.
(2) Negative Factors
1) The December monthly report shows that China's supply and demand pattern is particularly weak. The USDA has raised its forecast for China's imports and lowered its forecast for consumption, and China's weak pattern continues.
2) On the supply side, domestic cotton purchases continue to increase. Currently, 5.4 million tons of cotton have been purchased, and Qingdao port's imported cotton is already full.
3) Although textile mills have purchased some cotton, their bargaining power is strong, and Foshan warehouses are still overflowing. Downstream yarn shipments have slightly improved, but the overall trend of actively destocking remains unchanged.
II. American Cotton
(1) Positive Factors
1) The December monthly report lowered the US cotton production to 2.79 million tons, the lowest output in nearly ten years.
2) Southeast Asia has been operating weakly since June last year, continuing until the end of this year. The destocking state has lasted for a year and a half, and there will be a need for restocking in the future.
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 while the global PMI remains below the boom-bust line.
2) Recently, the volume of US cotton contracts has been declining continuously. The latest week's signings fell to 27,000 tons. Excluding purchases from China, purchases from other Southeast Asian countries have been sluggish, and global consumption faces a continuous downward risk.
3) Southeast Asia has been operating weakly recently, and the operating rates of India, Vietnam, and Pakistan are still declining.
Focus: The sustainability of downstream improvement

previous：

Tongzhou Cotton Market Brief, Week 3 of December 2023

next：

Tongzhou Cotton Market Brief, Week 1 of December 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.

Details

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.

Details

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.

Details

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.

Details

President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

Sorry，当前栏目暂无内容!

您可以查看其他栏目或返回 首页

Sorry，The current column has no content!

You can view other columns or return Home