Tongzhou Market Information Brief, Week 1 of March 2020
I. Zhengmian (China's Cotton Futures Contract)
Positive Factors:
1% price inversion between domestic and international cotton futures.
Xinjiang cotton continues to be included in the national reserve.
The domestic epidemic continues to ease.
Improved capital liquidity.
Negative Factors:
Delayed resumption of work by enterprises due to the epidemic, reducing demand.
The amount of cotton added to the national reserve cannot offset the decrease in consumption.
Polyester replacing cotton consumption.
II. American Cotton
Positive Factors:
1. India's CCI (Cotton Corporation of India) reserve purchases support cotton prices.
2. Expectation of American cotton being added to reserves.
3. Expectation of reduced global cotton planting area in the 20/21 season.
Negative Factors:
1. The epidemic is spreading in countries such as the EU, the US, South Korea, Japan, and Iran.
2. Short-term foreign yarn demand is constrained by reduced demand from China and high prices.
3. Weak macroeconomic conditions, weak demand, and inventory reduction require time.
III. Focus
1. Changes in the Sino-US trade situation.
2. Pace of downstream resumption of work.
3. Changes in the epidemic situation in the United States and the European Union.
4. Future planting area.
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.
Contact
Henan Tongzhou Cotton Industry Co., Ltd.
Address: 10th Floor, Henan Nongxin Building, No. 19 Commercial Outer Ring Road, Zhengdong New District,Zhengzhou, China
Tel：86037165836206
Email：tongzhou@tongzhoucotton.com
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