Tongzhou Cotton Market Brief, 5th week of January 2024

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) Downstream yarn mills have relatively good orders, extending on average to around the Lantern Festival (fifteenth day of the first lunar month), while some mills have orders extending to March.
2) Downstream fabric mills report orders extending to March, mainly export orders from Europe and America, with a significant year-on-year improvement in exports.
3) Recent significant increases in international prices warrant attention to the potential upward pull on Zhengmian prices after foreign cotton prices break through.
(2) Negative Factors
1) From the supply side, the current supply of Xinjiang cotton and imported cotton at ports is ample, representing the period of greatest supply pressure.
2) Fabric mills’ raw material inventories, after a month and a half of replenishment, have reached their highest level for the same period in history, indicating the replenishment phase is nearing its end.
3) From an overall industry perspective, downstream cotton yarn inventories have decreased by about 20% in this round, but still remain relatively high.
II. US Cotton
(1) Positive Factors
1) Starting in the fourth quarter of 2023, overseas markets received orders for clothing from European and American brands. Some brands, after a year and a half of destocking, have returned their inventories to normal levels.
2) Currently, Brazilian and Australian cotton sales are nearing completion. In the first quarter of 2024, US cotton will be the main global supply.
3) Recently, domestic cotton prices in India and Pakistan have risen rapidly, leading to increased demand for US cotton imports.
(2) Negative Factors
1) Under the influence of El Niño in 2024, US cotton production is expected to recover next year. At the same time, Brazil has increased its planting area this year and is expected to continue to have a bumper harvest.
2) While some clothing orders have been placed recently in Europe and America, order prices are very low, limiting factory profit margins. Although demand has improved, it remains weak, and the market acceptance of cotton above 85 is low.
3) Under the suppression of high interest rates in the United States, there is no speculative replenishment of cotton.
Points to Watch: The sustainability of downstream market improvements
 

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Tongzhou Cotton Market Brief, Week 1 of February 2024

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Tongzhou Cotton Market Brief, 4th Week of January 2024

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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