2024 China Cotton Zhangjiagang Forum was grandly held! Cotton volatility increases, and home textile market applications are enhanced ( Reprint NetEase News )

Yesterday, the 17th 2024 China Cotton Zhangjiagang Forum was successfully held in Suzhou, with more than 800 participants, and experts and representatives from all parties responded positively and enthusiastically.

The forum was hosted by Zhangjiagang Cotton Chamber of Commerce, Zhangjiagang Free Trade Zone Textile Raw Materials Market, and Dongwu Futures Co., Ltd.

At the meeting, Lu Dingfeng, member of the Party Working Committee of Zhangjiagang Free Trade Zone, Xiao Jingyao, President of Zhangjiagang Cotton Chamber of Commerce, Shi Wei, General Manager of Dongwu Futures, and Ma Jianfeng, Chief of the Supervision Section of Jingang Customs, delivered opening speeches.

Xiao Jingyao said that with the care and support of the Zhangjiagang Free Trade Zone Management Committee, Zhangjiagang Free Trade Zone Logistics and Trade Bureau, and Zhangjiagang Free Trade Zone Textile Raw Materials Market, Zhangjiagang Cotton Chamber of Commerce fully played the role of a bridge and link, and took special lectures, professional forums, study visits, etc. as the starting point to fully serve industry customers, maintain the industry atmosphere, and serve economic construction, especially the annual cotton forum, which is the 17th this year. Over the past 17 years, no matter how the market situation changes, we have always adhered to the characteristics of "how to look at it, how to do it", and strived to create the most down-to-earth industry activities, which have been recognized and praised by cotton industry peers across the country, and have a certain reputation and influence.

Shi Wei said in his speech that recently, the Central Document No. 1 of 2024 was issued. This is the 12th No. 1 document issued by the Central Committee since the 18th National Congress of the Communist Party of China to guide the work of "agriculture, rural areas and farmers", and continue to plan the work of "agriculture, rural areas and farmers". Affected by macro factors such as global geopolitics and continued global high inflation, agricultural commodity prices, exchange rates and interest rates fluctuate violently, bringing great pressure and challenges to the production and operation of agricultural enterprises, and the importance and urgency of enterprise risk management are increasing. This also makes the function of futures more prominent, and more and more listed companies enter the futures derivatives market, and hedging and risk management quickly become the mainstream choice.

The journey is long and the wind is strong, and the heavy responsibility is set off again. Shi Wei said that Dongwu Futures is willing to work with major cotton companies in China to promote the cotton industry to a new level and contribute all its strength to promote the rise of China's cotton industry. I wish this forum a complete success!

Expert representatives offer suggestions and advice, and foreign market demand may pick up

In the keynote speech session, many guests, including Shen Liang, founder of Qihe.com, Liu Xin, general manager of Rongrui Investment, Zheng Shengwei, general manager of the third department of Xiamen Guomao Textile Co., Ltd., Jiang Xingchun, general manager of the wealth management department of Dongwu Futures, Li Tao, general manager of Yimiangou, Gao Feitang, senior cotton market analyst of Zhuochuang Information, and Chen Wenju of Dongwu Futures, delivered wonderful speeches.

Liu Xin, general manager of Rongrui Investment, said that cotton prices fluctuated greatly in 2023, and downstream profits were severely eroded. After a wave of increases after December last year, downstream profits were restored, but the comprehensive profits were still not positive.

Liu Xin finally concluded that the price difference of flower yarn has been low for a long time, and the profits of textile enterprises have been suppressed. In line with the demand for cotton yarn procurement, it is possible to choose the opportunity to expand processing profits.

Li Tao, general manager of Yimiangou, said that the grain area in Xinjiang will continue to increase in 2024, and the cotton planting area may continue to decline. The cotton seed may be harvested at the end of the new year. The demand in foreign markets may pick up, which will provide some support for China's textile exports. Xinjiang's increased production capacity may increase the rigid demand of direct downstream.

In addition, foreign cotton production may increase in 2024, the amount of imported foreign cotton will remain high, and the price advantage of chemical fiber raw materials will be obvious. Domestic commercial inventories rise and fall seasonally, and whether the inventory in Xinjiang will be tight again remains to be seen.

Li Tao said that on the demand side, enterprises have steadily resumed work and production after the Spring Festival, raw material prices have risen before the festival, and the profit of yarn production is limited. The overall stocking quantity is not large. The foreign cotton market may have a phased long-short conversion effect. Overall, prices are easy to rise and difficult to fall, but the increase is limited.

Xiangshan Sword Discussion, Global Cotton Situation and Outlook

Later in the meeting, the Xiangshan Sword Discussion Roundtable Meeting was launched. The themes of the two forums were "Global Cotton Situation and Outlook" and "Analysis of Long and Short Logic in the Cotton Market".

In the "Global Cotton Situation and Outlook", Zhu Gensheng, general manager of Ruijia International, hosted the meeting. The guests included Xiao Jingyao, president of Zhangjiagang Cotton Chamber of Commerce, Zhang Man, general manager of China Cotton Information Network, Chen Tao, honorary chairman of Louis Dreyfus China, Huang Hongyu, president of Henan Tongzhou Cotton Industry Company, Gong Wenlong, chairman of Cotton Cloud Technology Group and Shanghai Cotton E-commerce Co., Ltd., and Lu Jianhua, chairman of Changzhou Keteng Textile Co., Ltd.

In the "Analysis of the Long and Short Logic of the Cotton Market", Xu Xiaoxiang, chairman of Zhangjiagang Free Trade Zone Haitang International, hosted the meeting. Guests including Hong Kong Hengfeng Group and Nantong Yinshuai Textile Co., Ltd. participated.