Strong US end-market in August 2024
Terminal market shows mixed performance
Strong in the US, weak in Europe and Japan
US retail sales remain resilient, inflation cools
US retail sales increased by 0.1% month-on-month in August, exceeding expectations, with July's data revised upward by 0.1 percentage points to 1.1%. In August, furniture and home furnishing store sales fell 0.7% year-on-year and 0.7% month-on-month; general merchandise stores (including department stores) sales increased by 2.1% year-on-year and decreased by 0.3% month-on-month. This shows that while the US economy remains resilient under the current high interest rates, one should not be overly optimistic about the future trend of the home furnishing market.
In August, the US CPI index rose 0.2% month-on-month and 2.5% year-on-year, a significant decrease from the previous value of 2.9%, marking the fifth consecutive month of slowing and reaching its lowest level since February 2021, with a month-on-month increase of 0.2%.
EU retail sales remain largely stable, inflation falls more than expected
According to preliminary estimates, compared to June 2024, Seasonally adjusted retail trade in the euro area grew by 0.1%, and by 0.2% in the EU. In June 2024, retail trade in both the euro area and the EU fell by 0.4%.
In August, the euro area inflation rate increased by 2.2% year-on-year, falling to a three-year low. Inflation in Germany, the euro area's largest economy, cooled to 2%, exceeding expectations. French inflation rose 2.2% year-on-year, compared to 2.7% a year earlier.
Japan's retail sales remain sluggish, spending decreases
In the first eight months, the cumulative retail sales of textiles and clothing in Japan increased by 0.9% year-on-year. Except for June and August, declines of varying degrees were observed in other months.
Real wages in Japan fell after the summer bonus season in August, and household spending also decreased. The Ministry of Health, Labour and Welfare reported that inflation-adjusted wages fell 0.6% year-on-year, while the revised figure for July was a 0.3% increase. Household spending fell 1.9% year-on-year in August, but after seasonal adjustment, spending increased by 2.0% month-on-month, the largest monthly increase in a 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.
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
Mobile
CopyRight © 2025 Henan Tongzhou Cotton Industry Co., Ltd.