Tongzhou Cotton Market Brief, Week 1 of July 2024

I. Zhengzhou Cotton
(1) Positive Factors
1) After downstream companies reduced production and operating rates, the finished goods inventory of some yarn mills has begun to decline, and the contradiction is gradually being resolved. Yarn mills' immediate profits have turned positive, and the worst phase of the industry has passed.
2) Downstream raw material inventories are extremely low. Cotton inventories at yarn mills and cotton yarn inventories at fabric mills are at very low levels. If demand improves, there will be significant replenishment demand.
3) The peak of US interest rates has been seen. In the future, as interest rates are lowered, market pressure will decrease. Domestic policies are also guiding towards inflation. Therefore, from a macroeconomic perspective, buying on dips has a high margin of safety.
(2) Negative Factors
1) The planted area of American cotton at the end of June was 11.7 million acres, 1 million acres higher than in March. The high temperatures in Xinjiang have also subsided, further strengthening the expectation of a bumper harvest in supply.
2) As prices continue to fall, the pressure on unsold resources held by upstream large players is increasing, and the pressure to maintain collateral is also increasing. Future sales cannot be ruled out.
3) The downstream sector has entered a significant off-season. After yarn mills reduced their operating rates, cotton usage decreased, and inventories increased, leading to reduced cotton purchases by yarn mills.
II. American Cotton
(1) Positive Factors
1) India's MSP for the 2024/25 season has been increased by 7.5%, equivalent to 91 US cents. India's MSP will support the US market through India-US spot trade flows.
2) American cotton has entered an undervalued state. Southeast Asia has a strong willingness to price below 70, and immediate profits have significantly improved.
3) Currently, from the perspective of the price difference between domestic and international markets, foreign cotton still has a competitive advantage, offering better value than Zhengzhou cotton.
(2) Negative Factors
1) Texas still experienced rainfall this week, which helps alleviate the impact of high temperatures and improve soil moisture.
2) Southeast Asian demand shows no highlights. Yarn prices in Pakistan and Vietnam are still falling, and demand remains weak.
3) To date, the weather in the United States and Brazil continues to be favorable for cotton production. There are no weather problems.
Focus: US weather

previous：

Tongzhou Cotton Market Brief, Week 2 of July 2024

next：

Tongzhou Cotton Market Brief, Week 4 of June 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.

Details

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.

Details

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.

Details

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.

Details

President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

Sorry，当前栏目暂无内容!

您可以查看其他栏目或返回 首页

Sorry，The current column has no content!

You can view other columns or return Home