The China Cotton Textile Industry Chain Supply Chain Development Conference, co-organized by our company, was successfully held.
The current global competitive environment is increasingly complex, and the rules and order are accelerating restructuring. Transformation and upgrading have become the endogenous driving force for high-quality and sustainable development of the cotton textile industry. To enhance the resilience and security level of the industrial chain and supply chain, promote the integrated development of the cotton textile industry chain and supply chain, and guarantee the supply of cotton textile raw materials through multiple channels, on July 18, the China Cotton Textile Industry Association held the "China Cotton Textile Industry Chain and Supply Chain Development Conference" in Zhengzhou, Henan, analyzing the changing development environment and domestic and foreign textile market trends, assessing the supply and demand situation of cotton textile market raw materials, and discussing with industry colleagues how to strengthen risk control, activate new productive forces, and accelerate structural adjustment and innovative transformation.
The theme of this conference is "New Supply and Demand Pattern, New Opportunities," and is an important part of the "2024 Textile and Garment Superior Supply and Upgrading Activity" jointly launched by the Ministry of Industry and Information Technology and the Ministry of Commerce. It is an important activity to boost industry confidence, promote stable operation, and achieve high-quality development under the current increasingly complex and severe external environment. The conference is hosted by the China Cotton Textile Industry Association, undertaken by the Raw Material Industry Chain Branch of the China Cotton Textile Industry Association, co-organized by Henan Tongzhou Cotton Industry Co., Ltd., and received special support from the Zhengzhou Commodity Exchange and Lida (China) Textile Instruments Co., Ltd.. Leaders and guests including Dong Kuiyong, President of the China Cotton Textile Industry Association; Jing Shenquan, Vice President; Yuan Jianlong, Executive President of Henan Textile Industry Association; Guo Shuhua, Vice General Manager of Zhengzhou Commodity Exchange; Wei Gangmin, Chairman of Henan Tongzhou Cotton Industry Co., Ltd.; and Xu Lu, Director of Market and Communication Department of Lida (China) Textile Instruments Co., Ltd. More than 300 people attended the conference, including representatives from the Raw Material Industry Chain Branch of the China Cotton Textile Industry Association, representatives from cotton textile enterprises, and representatives from relevant enterprises in the cotton textile industry chain and supply chain. The conference was hosted by Jing Shenquan, Vice President of the China Cotton Textile Industry Association, and Li Tao, Vice President of Henan Tongzhou Cotton Industry Co., Ltd..
Since the beginning of this year, the international political and economic environment facing the cotton textile industry remains complex and changeable, and the economic operation of the industry still faces many difficulties and challenges. Faced with the complex situation, the entire industry fully implements the decisions and deployments of the Party Central Committee and the State Council, focusing on accelerating the construction of a modernized cotton textile industry system with high-quality development, and actively cultivating new productive forces. Dong Kuiyong, president of the China Cotton Textile Industry Association, said in his speech that in recent years, the cyclical fluctuations of the industry's peak and off-peak seasons have weakened, insufficient effective end-demand has affected industry confidence, and the international textile and garment supply chain has also undergone major changes. Companies' existing production and sales channels, product prices, and capital turnover are under pressure, and the operating pressure has significantly increased. Regarding the development of the cotton textile industry, he put forward three points of view: First, to promote the bright prospects of high-quality development of the cotton textile industry. China's cotton textile industry is a fully competitive and highly market-oriented industry. The development and entry and exit of enterprises follow their inherent market laws. China's cotton textile development has a solid foundation, many advantages, and huge potential. The long-term positive trend of the industry will not change. We should remain confident and have the hope and ability to maintain the industry's sustained, stable, and healthy development. Second, to deeply integrate into the new development pattern of "dual circulation." First, we must face China's largest unified and large market and its hierarchical status, and targetedly explore the domestic market; second, facing overseas competition and the reconstruction of a supply chain system centered on itself by countries such as the US and Europe, China's cotton textile industry should optimize its global layout, rely on leading enterprises to establish two models: "China headquarters + global production layout" and "China brand + global supply chain," firmly grasp the initiative in the international supply chain, enhance its position and competitiveness in the global industrial division of labor, and break through the blockade of Xinjiang cotton products by the US and Western countries. Third, to improve risk control from the raw material end. Cotton and non-cotton fibers have played to their respective advantages, jointly ensuring the raw material demand of the cotton textile industry. In recent years, the proportion of cotton used in cotton textiles has been about 1/3 of all raw materials, and it has been decreasing. In order to avoid direct competition with Xinjiang, the willingness and trend of domestic enterprises to use chemical fiber staple fibers are gradually strengthening. Large fluctuations in cotton prices have brought significant risks to the production and operation of cotton textile enterprises. Enterprises can fully utilize their advantages as the industry end that is sensitive to the market and use financial tools to carry out hedging and prevention work. At the same time, cotton textile enterprises can give full play to the advantage that their processing equipment can process various raw materials, increase the research and development and production of chemical fiber staple fiber products, especially new types of fibers, green fibers, and recycled fiber products.
The current operating environment for cotton textile enterprises remains difficult, and various links in the industrial chain have problems such as high finished product inventory, low raw material inventory, declining capacity utilization rate, and insufficient market confidence. Li Tao, Vice President of Henan Tongzhou Cotton Industry Co., Ltd. In his speech, he stated that numerous uncertainties have brought significant operating risks to cotton-related enterprises. Will future domestic and foreign sales orders improve? When will the macroeconomic control policies for the cotton market be implemented? How will the new cotton acquisition cost be priced? What will be the impact of the Fed's interest rate cut in the second half of the year on bulk commodities? Where will the prices of cotton, polyester staple fiber, and regenerated cellulose fiber go in the future? How to make scientific decisions to avoid risks is a common issue we face, which is also the theme and significance of today's conference. Exchanging ideas, stimulating wisdom through debate, supporting each other, overcoming difficulties together, and working together for the high-quality development of China's cotton textile industry.
The world textile and garment trade has developed rapidly in the past two decades, and in recent years, the international supply chain procurement pattern has undergone significant adjustments. Cui Xiaoling, trade policy specialist at the International Trade Office of the China National Textile and Apparel Council, gave an analysis of the new trends in the global textile supply chain layout from three aspects: changes in the global textile and garment trade pattern, progress and key focuses of China's textile industry's foreign investment, and prospects for the industry's international development trends. She stated that from 2000 to 2022, the global share of the world's top ten textile and garment importing countries decreased from 71.3% to 49.1%; the combined imports of clothing from the United States, the European Union (from outside the EU), Japan, and the United Kingdom accounted for 66.7% of the world's total, which decreased to 46.4%; and the combined imports of textiles from Vietnam, Bangladesh, Turkey, and Indonesia accounted for 3.7% of the world's total, which increased to 13%. China's textile industry chain products participate in international competition, support the stable operation of the international textile supply chain, China's textile industry's international layout has steadily expanded, and cooperation in the construction of textile supply chains has entered a new stage. According to incomplete statistics, from 2013 to 2023, China's textile industry's outstanding foreign investment exceeded US$12 billion, with projects distributed in more than 100 countries and regions, covering all aspects of the industrial chain. Among them, direct investment in countries participating in the "Belt and Road" Initiative exceeded US$6 billion, accounting for 50% of the industry's global investment. However, enterprises face complex and severe external risks and challenges in foreign investment, and should fully utilize the policy advantages of the free trade zone system to carry out trade and investment cooperation.
The cotton output in the Southern Hemisphere has been basically determined, while the cotton output in the Northern Hemisphere is still affected by the weather. It is expected that the global cotton output in the 2024/25 season will increase by 1.41 million tons compared to the previous year. Zhao Nana, Vice President of Henan Tongzhou Cotton Industry Co., Ltd., gave a speech titled "Analysis and Outlook of Global Cotton Supply and Demand" Analysis was conducted on global cotton production in major producing regions, global cotton consumption expectations, the substitutive relationship between cotton and other fibers, the situation of US textile and apparel imports, and the end inventory cycle. She indicated that from the supply side, global cotton production in the 2024/25 season will increase by 5.6% to 26.17 million tons, mainly due to growth in Brazil (+50) and the United States (+108). From the perspective of yield trends, price ratios, and supporting policies, global cotton production is trending towards stability or growth; the risk comes from large-scale catastrophic weather. From the consumption side, there has been some marginal improvement in the short-term downstream, but attention needs to be paid to whether the operating rate will increase and the situation of seasonal orders. In the long term, it is necessary to pay attention to whether the sensitivity of cotton supply will be higher than demand due to substitution and reduced capacity utilization. In addition, attention should be paid to whether the USDA's projected 3.4% increase in consumption in the 2024/25 season is too high in an environment of stagnant global growth and weak substitution of consumption and inventory replenishment.
Since 2014, with the strong support of the state and the Xinjiang Uygur Autonomous Region, Xinjiang's textile and apparel industry has actively undertaken the transfer of industries from inland areas, optimizing and improving its industrial chain and supply chain system, leveraging its location advantages and national policies. Xinjiang and inland cotton textile industries, through collaborative development, mutual promotion, and market competition, have jointly ensured the competitiveness of China's cotton textile industry chain and supply chain in the international market. Guo Zhanjun, assistant president and vice secretary-general of the China Cotton Textile Association, shared insights on the development trends of Xinjiang's cotton textile industry and the upgrading direction of inland cotton textile industries, covering aspects such as the scale of Xinjiang and inland cotton textile industries, their respective advantages and challenges, and their development trends. He noted that the proportion of yarn and fabric output in Xinjiang to the national total has been increasing in recent years; as of 2023, Xinjiang's yarn and fabric output ranked 4th and 7th, respectively, among major provinces in China. Xinjiang's orderly acceptance of the transfer of inland cotton textile industries has promoted the optimization of industrial layout and integration into the new development pattern of dual circulation. Xinjiang's main cotton textile products, with cost advantages granted by policies, have a more significant advantage in competing with similar products from inland areas, leading to intense market competition pressure in inland regions primarily producing conventional pure cotton yarn. Exploring the development trends and upgrading directions of Xinjiang and inland cotton textiles requires a full assessment of the advantages and challenges facing industrial development, adapting to local conditions, leveraging strengths and avoiding weaknesses, precise positioning, selecting the right track, and finding a development path suitable for individual enterprises.
The forum session was chaired by Huang Hongyu, President of Henan Tongzhou Cotton Industry Co., Ltd. In-depth discussions were held with Liu Changxiong, Marketing Director of Wuhan Yudahua Textile and Garment Group Co., Ltd.; Jin Hairong, Vice General Manager of Jiangsu Lianfa Textile Co., Ltd.; Wang Dongcheng, Vice General Manager of Jiangsu Yueda Cotton Textile Co., Ltd.; and Xiao Shiguo, CEO of Shanghai Cotton Union E-commerce Co., Ltd., focusing on aspects such as product structure and changes, raw material structure changes and usage demands, changes in product sales markets, corporate response strategies and development plans, and judgment on the market situation in the second half of the year.
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.
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.
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.
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.
Henan Tongzhou Cotton Industry Co., Ltd.
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