Tongzhou Cotton Market Brief, Week 1 of April 2024

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) Currently, the basis of Xinjiang cotton is at a moderately high level, and the willingness of upstream suppliers to maintain prices remains strong, with cost support remaining effective in April.
2) Temperatures have risen rapidly recently, and downstream demand has improved month-on-month, with clothing, fabrics, and greige fabrics all destocking, indicating a marginal improvement in demand.
3) Last week, regions such as Aksu entered the planting season; precautions need to be taken against weather-related price increases during the planting season.
(2) Negative Factors
1) The recent improvement in downstream demand has mainly focused on consuming existing inventories, and this has not been smoothly transmitted to the spinning mills. Spinning mills continue to face the situation of accumulating finished goods inventory.
2) There is significant hedging pressure from above. Most companies must reach their cost line before hedging, resulting in significant downward pressure on cotton prices.
3) From the supply side, the total supply this year is not lacking, and structural contradictions do not determine the trend.
II. US Cotton
(1) Positive Factors
1) US cotton shipments were large in a single week, and the shipping progress is still higher than the five-year average, meaning that the problem of low terminal inventory of US cotton in the future has not been alleviated.
2) The net long position of funds is 32%, which remains high.
3) Last Friday, the USDA announced its planting area estimate for March at 10.67 million acres, a year-on-year increase of 4%, lower than market expectations, and the biggest short-term negative factor has materialized.
(2) Negative Factors
1) US cotton spot does not have competitiveness. The market cannot consume the current high-priced cotton. In contrast, delivery warrants have a clear advantage, with warrants rapidly increasing to 15,000 tons last week.
2) The net long position of US cotton funds has been declining in the past two weeks, indicating that long positions are temporarily exiting. The latest week saw a decrease of 1 percentage point to 32% compared to the previous week.
3) The proportion of undelivered contracts for 05 is constantly declining and has reached a historical low.
Points to Watch: Whether the downstream improvement can be transmitted to spinning mills

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Tongzhou Cotton Market Brief, Week 2 of April 2024

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Tongzhou Cotton Market Brief, Week 4 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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