Tongzhou Cotton Market Brief, Week 1 of February 2024

I. Zhengmian (China's cotton futures contract)
(I) Positive factors
1) Downstream yarn mills have relatively good orders, averaging until around the Lantern Festival (around mid-February), with better mills receiving orders until March.
2) Downstream textile mills report orders extending to March, mainly export orders from Europe and the US, with a significant year-on-year improvement in exports.
3) The recent significant increase in overseas prices warrants attention to the potential upward pull on Zhengmian cotton prices after a breakthrough in foreign cotton prices.
(II) Negative factors
1) From the supply side, the current supply of Xinjiang cotton and imported cotton at ports is abundant, representing the peak of supply pressure.
2) After a month and a half of replenishing inventories, textile mills' raw material inventories have reached their highest level in the same period of history, and the inventory replenishment is nearing its end.
3) From an overall industry perspective, downstream cotton yarn inventories have only decreased by about 20% this round, and are still relatively high.
II. US Cotton
(I) Positive factors
1) Starting in the fourth quarter of 2023, overseas markets received orders for clothing from European and American brands. Some brands have experienced a destocking cycle of about a year and a half, and inventories have returned to normal levels.
2) Currently, the sales of Brazilian and Australian cotton are nearing completion. In the first quarter of 2024, US cotton will be the main global supply.
3) US cotton has extremely low end-of-season inventories. If subsequent US cotton contracts perform well, the supply and demand of US cotton will be very tight.
(II) Negative factors
1) Under the influence of El Niño in 2024, US cotton production is expected to recover next year, and Brazil's acreage will increase this year, which is expected to lead to continued high yields.
2) Although some clothing orders have been placed in Europe and the US recently, the order prices are very low, and factories cannot increase their profit margins. Although demand has improved, it is still relatively weak, and the market's acceptance of US cotton above 85 is not high.
3) Under the suppression of high interest rates in the United States, speculative replenishment of clothing inventories does not exist.
Focus: The sustainability of the downstream improvement after the new year
 

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Tongzhou Cotton Market Brief, 3rd week of February 2024

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Tongzhou Cotton Market Brief, 5th 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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