Tongzhou Cotton Market Brief, Week 4 of February 2024

I. Zhengmian Cotton
(1) Bullish Factors
1) Yarn mills currently have orders generally extending to the end of February, with some extending to mid-March, indicating sufficient short-term orders for yarn mills.
2) The average raw material inventory of yarn mills is one to one and a half months, slightly lower than the same period last year.
3) Every year at the beginning of the year, downstream industries see a "bumper harvest," coupled with low finished goods inventory at yarn mills, resulting in little downstream pressure.
(2) Bearish Factors
1) From the supply side, the current supply of Xinjiang cotton and imported cotton is ample, representing the peak of supply pressure.
2) Fabric mills have replenished their raw material inventories to the highest level for the same period in history following the pre-holiday replenishment, and there is insufficient impetus for further replenishment.
3) From an overall industry perspective, the downstream cotton yarn inventory has decreased by approximately 20% in this round, yet still represents relatively high inventory levels.
II. American Cotton
(1) Bullish Factors
1) The February monthly report once again increased the export of American cotton by 40,000 tons, and the ending inventory of American cotton was reduced by 20,000 tons to 610,000 tons, indicating a truly tight supply-demand situation for American cotton.
2) Funds have massively entered the market to take a long position in American cotton, with the net long proportion increasing by 3 percentage points month-on-month to 36%.
3) Southeast Asia still has clothing orders, while the clothing cycle in Europe and the United States has reached its low point.
(2) Bearish Factors
1) Recently, the price ratio of American cotton to other agricultural products has risen rapidly, and the future planting area of American cotton is expected to continue to increase.
2) Recently, the conditions in the Texas area have been good, with deep soil moisture continuously improving, which is beneficial for a significant increase in American cotton production.
3) Fundamentals are unable to absorb the current cotton price. If Southeast Asia uses American cotton, yarn mills will suffer immediate losses, and the basis of imported cotton has been continuously declining recently.
Points to Watch: The sustainability of downstream improvement after the New Year

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Tongzhou Cotton Market Brief, Week 1 of March 2024

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Tongzhou Cotton Market Brief, 3rd week 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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