According to SunSirs price monitoring, the Chinese cocoon and silk market rebounded slightly this week. As of May 8, the average price of the dry cocoon market was 83,000 yuan / ton, a weekly increase of 3.69%. The raw silk market price first rose and then fell, and the average price was 265,500 yuan/ ton, a weekly increase of 2.12%; of which the current price of dry cocoons in Jiaxing, Zhejiang is 85,000 yuan / ton, the price of raw silk is 255,000 yuan / ton, the price of dry cocoons in Guangxi is 81,000 yuan / ton, and the price of raw silk is 276,000 yuan / ton. With the continuous listing of spring cocoon, the trading atmosphere in the spot market has slightly increased, and the silk price has also followed a small increase. However, the cocoon silk market still lacks large-volume transactions, and the power support for the sharp increase is still insufficient.
This week, the first batch of spring cocoons in Yizhou entered the end of the acquisition. The cocoon stations in some local towns and townships can still acquire the first batch of spring cocoons. The purchase price is about 34 yuan / kg. However, Xincheng's second batch of spring cocoons has continued to be listed, and the purchase price has remained at around 30-31 yuan / kg. Overall, the purchase price of the first batch of spring cocoons generally showed a trend of opening lower and going higher, from the initial purchase price of about 24 yuan / kg to about 34 yuan / kg at the end of the listing. It is expected that the second batch of spring cocoons will go public next week.
May ushered in a sharp rise in crude oil and polyester raw material prices, downstream manufacturers take more goods, gray fabrics are also more active in shipments. However, there is still no obvious sign of recovery in the terminal textile market, the inventory of weaving companies has not decreased significantly, and the continued downturn in demand has become the biggest pressure on the price of cocoon silk. At the same time, foreign trade companies still face many difficulties such as cancellation or extension of orders, difficulty in signing new orders, and poor logistics. From January to April 2020, textile and apparel exports totaled 66.62 billion U.S. dollars, down 10%, of which textile exports were 37.31 billion U.S. dollars, up 2.9%, and apparel exports were 29.31 billion U.S. dollars, down 22.3%. In April, driven by the export of masks and other epidemic prevention products, China's textile exports were US $ 14.62 billion, a substantial increase of 51.06% year-on-year; clothing exports were US $ 6.74 billion, a decrease of 27.7%.
In short, the impact of public health incidents has been transmitted to the sericulture industry. Farmers in Guangxi Zhuang Autonomous Region began to unsubscribe from small silkworms, small silkworm co-cultivators began to reduce the number of co-cultured silkworms, and silkworm farms began to reduce silkworm production. The output has decreased by 20% to 30% compared with the same period of last year, and the silkworm breeds of silkworm farmers have decreased by about 20% compared with the same period of last year. At the same time, the downstream domestic silk enterprises faced difficulties in production and operation, and successively reduced or canceled orders. After March 20, the sales of raw silk by silk reeling enterprises basically stagnate. According to the monitoring data of the Guangxi Cocoon Silk Industry Association, the production and sales of factory silk from January to March 2020 decreased by 28% and 33% year-on-year, respectively, and sales decreased by 31% year-on-year. Raw silk stocks are under pressure, and industry players generally expect that raw silk stocks will be produced in an average of about two months, and they are all stocks left by silkworm cocoons with high prices last year.
Based on a comprehensive analysis, SunSirs analysts expect the market outlook will continue to be under pressure.
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