The Demand For Cotton For Military Clothing Is Basically Above Level 3, And The Quantity Is Still Quite Large

As we all know, cotton is an important military material in military supplies. For example, military uniforms, cotton quilts, medical absorbent cotton, hemostatic bandages and other places all need a lot of cotton. It is understood that the military needs 25000 tons of cotton for clothing and 15000 tons of cotton for bedding. Considering the comfort, durability, appearance and other functions of military clothing, the cotton ratio of military clothing is basically 4:6, and that of quilt is 5:5. Cotton for military clothing demand Basically above Level 3.

Xinjiang Jihua 755 Professional Wear Co., Ltd. is a wholly-owned subsidiary of Jihua Group Co., Ltd., a subsidiary of the emerging Jihua Group, a Fortune 500 enterprise, and the only military supplies research and development, production, service and support base for the military and armed police in Xinjiang. In 2016, the company's self used cotton for military bedding was about 1500 tons. It used the group's advantages to build a supply chain, carry out cotton trade business, and complete the production and business volume of 15000 tons. It is estimated that in 2017, it will reach 25000 tons (excluding the national reserve cotton). It is understood that Changji Xinjingyuan Cotton Industry Co., Ltd. and Hutubi Wanyuan Cotton Industry Co., Ltd., two cotton processing enterprises subordinate to 7555 Company, had a total reserve of 6000 tons of cotton in 2016, of which Gansu cotton accounted for more than 30%. The company actively participated in 2017 Auction and storage business We will use the platform of Jihua Group's cotton gathering center to increase the reserve. However, as the price of cotton this year is not particularly stable, as of March 23, it has accumulated more than 800 tons.

As for the future cotton price, Ni Yundong, the general manager of Changji Xinjingyuan Cotton Industry Co., Ltd., the head of the enterprise, said that the world cotton looked at China, and the Chinese cotton looked at Xinjiang. At present, only about 5% of the hand picked cotton of Shuang 28 and Shuang 29 are left in Xinjiang market, and the supply of high-quality cotton is tight; With the continuous rotation of reserve cotton, the problem of public inspection quantity and ex warehouse gradually appears; The US interest rate hike and other factors have all brought positive signals to the market, so it is expected that cotton prices will rise around May. Textile enterprises should timely seize the opportunity to enter the market to purchase and store goods.

In 2017, the No.1 Central Document clearly pointed out that economic crops should optimize variety quality and regional layout, consolidate the production of cotton, oil plants and sugar plants in the main production areas, adjust and improve Xinjiang's cotton target price policy, and improve Subsidy mode 。 On March 16, the National Development and Reform Commission and the Ministry of Finance jointly issued the Notice on Deepening the Reform of the Target Price of Cotton (FGJG [2017] No. 516), which determined that the target price level of cotton would be fixed for three years, and the target price level of cotton in Xinjiang would be 18600 yuan per ton in 2017-2019, providing a strong policy support for the sustainable development of the cotton industry in Xinjiang. Therefore, it is hoped that the textile enterprises in the mainland can invest more in Xinjiang and make full use of their advantages in all aspects to develop Xinjiang's cotton industry and revitalize China's cotton textile industry.

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