Tongzhou Cotton Market Brief, Week 2 of January 2024

I. Zhengmian Cotton
(I) Positive Factors
1) Recently, downstream operations have continued to improve, with spinning mills and weaving mills increasing their operating rates. Finished goods inventories have continuously decreased, currently reaching a relatively low level. With expectations for next year, the downstream sector continues to improve before the year-end.
2) From a seasonal perspective, the downstream sector usually improves after the Lunar New Year every year, experiencing a so-called "small spring." Therefore, there are still expectations in the downstream sector.
3) Domestically, orders from overseas are gradually being received, suggesting that some European and American brands may be entering a restocking cycle. Terminal orders are expected to improve in 2024.
(II) Negative Factors
1) Currently, the industrial operation is mainly driven by the stocking of weaving mills and traders. Whether the peak season in the first quarter of the year will truly arrive remains to be seen. If the peak season falls short, the current supply-demand pattern will not support the current cotton price.
2) Currently, the supply side in China is still relatively sufficient, with continuous imports of cotton. Domestic consumption is difficult to improve under the circumstances of no significant increase in residents' income and continuous asset shrinkage.
3) Ginning mills have not yet entered the market as the main hedging force. If the price rises to 16000, most Xinjiang ginning mills can be relieved.
II. American Cotton
(I) Positive Factors
1) In India and Vietnam, the operating rate and yarn prices have increased in recent weeks, demand has slightly improved, and Vietnam has received clothing orders.
2) Currently, the sales of Brazilian and Australian cotton are nearing their end. In 2024, the main global supply will only be American cotton.
3) Southeast Asia has suffered losses for a year and a half, with low raw material and finished goods inventories. If overseas markets enter a restocking cycle, overseas demand will rise rapidly.
(II) Negative Factors
1) The overseas restocking cycle is difficult to start while the global PMI remains below the boom-bust line.
2) US clothing wholesalers and retailers still have high inventories, and clothing retail data turned negative last month, which is not conducive to terminal inventory reduction.
3) Under extremely high interest rates, it is difficult for overseas restocking to start significantly, and the holding cost for traders is too high.
Focus: The sustainability of downstream improvement

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Tongzhou Cotton Market Brief, 3rd week of January 2024

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Tongzhou Cotton Market Brief, Week 4 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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