Tongzhou Cotton Market Brief, Week 2 of August 2024

I. Zhengmian (Zhejiang Cotton)
(1) Positive Factors
1) After the Zhengmian 01 contract fell below 13400, the valuation entered an undervalued state. Yarn mills' immediate profits turned positive, and some yarn mills are showing signs of buying and stockpiling.
2) The Zhangcha region's downstream fabric mills have shown slight improvement, with a slight increase in operating rates. Yarn mill operating rates remain stable, and downstream demand is gradually improving.
3) As the acquisition period approaches, if the market price is too low, some acquirers may consider buying directly in the market.
(2) Negative Factors
1) As the acquisition period approaches, the hedging force of 6 million tons is imminent, and the future listing pressure has yet to be reflected.
2) In the absence of export disruptions, domestic production capacity is severely oversupplied, but consumer spending remains weak, and domestic sales cannot absorb the 6 million tons of Xinjiang cotton.
3) Under price stability and user preferences, non-cotton alternatives are a major trend, especially in the context of industry involution. Enterprises need non-cotton products to continuously innovate.
II. American Cotton
(1) Positive Factors
1) The Texas region has experienced two consecutive weeks without effective rainfall, leading to a continuous decline in the excellent rate and non-drought index, causing some concerns about yield.
2) As the September Federal Reserve rate cut approaches, commodities are expected to see a phased rebound.
3) India's recent planting progress has been declining, and the market is increasingly concerned that the planting area will fall short of expectations.
(2) Negative Factors
1) The August monthly report may revise down US cotton exports due to lower-than-expected Chinese quotas, increasing pressure on the US.
2) Currently, the weather in Texas is still not a major problem. If there is another rainfall later, the expectation of a bumper harvest of American cotton will be further confirmed.
3) Funds have been shorting American cotton for a long time. The latest week's net long position of funds decreased by 2 percentage points to -18%.
Focus: US weather

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Tongzhou Cotton Market Brief, 3rd week of August 2024

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Tongzhou Cotton Market Brief, Week 1 of August 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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