Tongzhou Cotton Market Brief, Week 3 of March 2024

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) Overall yarn mill inventories are not large; raw material inventories are at normal levels, finished product inventories are relatively low, and yarn mills still have room for orders.
2) A large portion of domestic imports are state reserves imports, and cannot form effective market supply unless prices rise to a certain level.
3) Currently, prices are higher externally than internally. Xinjiang cotton and cotton yarn have a significant advantage over foreign cotton, which is conducive to the consumption of Xinjiang cotton.
(2) Negative Factors
1) From the supply side, the current supply of Xinjiang cotton production and imported cotton at ports is abundant, and this is the time of greatest supply pressure.
2) There is significant hedging pressure from above; most companies must reach their cost line before hedging, so there is heavy upward pressure on cotton prices.
3) Downstream new orders are not smoothly connected; yarn mills have gradually entered a stage of increasing inventory, and cotton prices cannot be digested.
II. US Cotton
(1) Positive Factors
1) The March monthly report lowered US cotton production by 70,000 tons to 2.63 million tons, with ending stocks at 540,000 tons, the second lowest ending stock in nearly twenty years, further deepening the tight supply situation for US cotton.
2) The net long position of funds remains high, with a week-on-week decrease of 2 percentage points to 35% last week.
3) Signs of inventory replenishment by clothing companies in Europe and the US have been observed, and further replenishment is expected to follow.
(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) If US cotton continues to be squeezed, there will be phenomena such as ship washing or transshipment to China.
3) Fundamentals cannot consume the current cotton price; if Southeast Asia uses US cotton, yarn mills will immediately lose money, and the basis of foreign cotton has been continuously declining recently.
Focus: The sustainability of downstream improvement after the New Year

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Tongzhou Cotton Market Brief, Week 4 of March 2024

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Tongzhou Cotton Market Brief, Week 1 of March 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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