Tongzhou Cotton Market Brief, Week 4 of December 2023

I. Zhengzhou Cotton
(A) Positive Factors
1) Recently, downstream industries are experiencing restocking, with operating rates rising across various links. Raw material inventories are increasing, and finished product inventories are being depleted, with the most significant reduction seen in yarn mills' finished product inventories.
2) It is understood that this wave of fabric restocking is mainly driven by small and medium-sized fabric businesses; larger fabric businesses may start restocking in the future.
3) Currently, yarn mills' raw material inventories are relatively low. With "Golden March, Silver April" approaching in March next year, yarn mills need to prepare raw material inventories.
(B) Negative Factors
1) The industry is showing recent improvement, and futures prices have rebounded from a low of 14520 to a high of 15480, reflecting the industry's improvement.
2) Cotton yarn destocking will inevitably suppress cotton consumption to some extent. In terms of the whole year, cotton supply exceeds demand.
3) In November, social inventories of cotton reached 5.44 million tons, the highest for the same period in the past five years, putting significant pressure on cotton and cotton yarn supply.
II. US Cotton
(A) Positive Factors
1) In the Indian and Vietnamese markets, operating rates and yarn prices have risen in the past two weeks, indicating a slight improvement in demand.
2) Currently, sales of Brazilian and Australian cotton are nearing completion. In 2024, US cotton will be the main global supply.
3) From the year-on-year perspective of wholesaler inventories, the US destocking cycle is indeed nearing its end.
(B) Negative Factors
1) The restocking cycle in Europe and the US is difficult to start while the global PMI remains below the prosperity line.
2) Inventories of US apparel wholesalers and retailers remain high, and apparel retail data turned negative last month, which is not conducive to destocking in the terminal market.
3) Southeast Asia has been performing weakly recently, and there is no sign of sustained improvement in terminal demand.
Focus: The sustainability of downstream improvement
 

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Tongzhou Cotton Market Brief, Week 2 of January 2024

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Tongzhou Cotton Market Brief, Week 3 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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