Tongzhou Cotton Market Brief, 3rd week of February 2024

I. Zhengzhou Cotton
(1) Positive Factors
1) Spinning mills currently have orders generally lasting until the end of February, with some extending to mid-March, indicating continued short-term order availability for spinning mills.
2) Spinning mills' raw material inventory averages one to one and a half months, slightly lower than the same period in previous years.
3) The recent significant increase in overseas markets, with the breakthrough of foreign cotton, has a driving effect on Zhengzhou cotton.
(2) Negative Factors
1) From the supply side, the current supply of Xinjiang cotton production and imported cotton at ports is abundant, representing a period of maximum supply pressure.
2) Fabric mills' raw material inventories have been replenished to the highest level for the same period in history after replenishment before the year, resulting in insufficient subsequent replenishment momentum.
3) From an overall industry perspective, the inventory of downstream cotton yarn has been destocked by about 20% in this round, still belonging to a relatively high inventory level.
II. US Cotton
(1) Positive Factors
1) The February monthly report increased US cotton exports by 40,000 tons again, and reduced US cotton ending stocks by 20,000 tons to 610,000 tons, indicating indeed tight supply and demand for US cotton.
2) Funds have massively entered the market to buy US cotton, with the net long position of funds increasing by 10 percentage points to 33% month-on-month.
3) The signing progress of US cotton will gradually accelerate in the later period. Only 12,000 tons of signing per week are needed in the next 24 weeks to achieve the target.
(2) Negative Factors
1) Recently, the price ratio of US cotton to other agricultural products has risen rapidly, and the future planting area of US cotton is expected to continue to increase.
2) Recently, the conditions in Texas have been favorable, with deep soil moisture continuously easing, which is conducive to a significant increase in US cotton production.
3) With the rise in US cotton prices, downstream buyers can no longer absorb the current cotton prices, and spot transactions have been reduced.
Points to Watch: The sustainability of downstream improvement after the year

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Tongzhou Cotton Market Brief, Week 4 of February 2024

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Tongzhou Cotton Market Brief, Week 1 of February 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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