Tongzhou Cotton Market Brief, 4th Week of September 2024

I. Zhengmian (China's cotton futures contract)
(1) Positive Factors
1) Hundreds of thousands of tons of cotton have been presold this year, meaning that ginneries need to collect hundreds of thousands of tons to fulfill orders, resulting in relatively firm initial purchase prices.
2) Yarn mills currently have very low raw material inventories and are waiting for new cotton, leading to replenishment demand in the early stages.
3) Expectations for a reduction in reserve requirements and interest rates in the fourth quarter have increased following the Fed's rate cut.
(2) Negative Factors
1) If cotton prices continue to rise, yarn mills will experience negative immediate profits, hindering price transmission.
2) Based on orders from major mills, the trend of "de-Chinaization" in Europe and the US will be more pronounced next year.
3) The pressure of domestic listing and hedging has not yet been fully reflected. Hedging pressure will become apparent after large-scale listing.
II. US Cotton
(1) Positive Factors
1) The unexpected rate cut by the US Federal Reserve, without widespread deterioration in consumption data, lowered rates by 50 basis points. Macroeconomically, this reverses the market's overreaction to recessionary expectations.
2) The actual allocation of quotas is higher than the previously announced 200,000 tons.
3) Currently, short positions in US cotton funds are overly concentrated. The exit of short sellers will lead to a significant rebound in the market; the recent rebound stems from short-selling exits.
(2) Negative Factors
1) This year's bumper harvests of Australian and Brazilian cotton pose strong competitive pressure on US cotton, which will face challenges after listing.
2) Downstream spot prices have significantly decreased above 72 cents, hindering downstream price transmission.
3) Above 71 cents, cotton farmers are gradually setting prices, creating downward selling pressure.
Focus: Domestic acquisition prices

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Tongzhou Cotton Market Brief, 3rd week of October 2024

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Tongzhou Cotton Market Brief, Second Week of September 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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