Tongzhou Cotton Market Brief, Week 3 of December 2023

I. Zhengmian (China's Cotton)
(1) Positive Factors
1) Yarn mills' production and sales ratio increased in the past week, yarn prices rose by 200-300 yuan/ton, yarn mill inventories have been reduced, and contradictions are gradually easing.
2) Cotton yarn traders have smoothly passed the end-of-year capital tightening period, and the phenomenon of defaults will not appear for the time being. The most intense stage of downstream contradictions has passed, and the downstream is beginning to slowly recover.
3) Currently, yarn mills' raw material inventories are low, and the "Golden March and Silver April" is approaching in March next year, so yarn mills need to prepare raw material inventories.
(2) Negative Factors
1) On the supply side, the domestic acquisition volume continues to increase, and 5.5 million tons of cotton have been acquired. Qingdao port is still full of imported cotton.
2) Although the operating rate of textile mills continued to rise this week and inventories continued to decline, the increase has slowed down, and the sustainability of downstream improvement is questionable.
3) Under the current domestic economic environment, with no significant increase in residents' income, domestic clothing sales have not shown a significant improvement.
II. American Cotton
(1) Positive Factors
1) The December monthly report lowered US cotton production to 2.79 million tons, the lowest output in nearly ten years.
2) Southeast Asia continues to suppress raw material inventories. If overseas demand improves in the future, Southeast Asia will be the first to replenish inventories.
3) From the year-on-year perspective of wholesaler inventories, the US destocking cycle is indeed nearing its end.
(2) Negative Factors
1) The inventory replenishment cycle in Europe and America is difficult to start when the global PMI remains below the boom-bust line.
2) Inventories of US clothing wholesalers and retailers remain high, and clothing retail data turned negative last month, which is not conducive to destocking at the end.
3) Southeast Asia has been weak recently, and the operating rates of Bangladesh, Vietnam, and Pakistan are still declining.
Focus: The sustainability of downstream improvement

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Tongzhou Cotton Market Brief, Week 4 of December 2023

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Tongzhou Cotton Market Brief, Week 2 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.

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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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