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SunSirs: Insufficient Power for Terminal Consumption, Weak Price of Chinese Cocoon Silk
August 18 2020 08:13:59SunSirs(Linda)

According to SunSirs price monitoring, the domestic cocoon silk market has shown a slight downward trend in the past week. As of August 17, the average dry cocoon market price was 88,500 yuan/ton, down 2.21% from August 10. The average price of raw silk in the market was 280,000 yuan/ton, down 1.23% from August 10. At present, the price of dry cocoon in Jiaxing, Zhejiang is 92,000 yuan/ton, the price of raw silk is 280,000 yuan/ton, the price of dry cocoon in Guangxi is 85,000 yuan/ton, and the price of raw silk is 280,000 yuan/ton.

In mid-August, the first batch of third-instar silkworms in the second half of this year will be distributed in Hechi, Guangxi and nearby Liucheng. According to some small silkworm breeding households, the price of this batch of third-instar silkworms is 240 yuan per piece, and the price of the last batch of third-instar silkworms in the first half of the year is also 240 yuan per piece. 280 yuan, to 260 yuan, to 240 yuan. Due to the hot weather, the growth of mulberry leaves could not keep up. In addition, the price of silkworm cocoons in the second half of the year remained a wait-and-see mood. The early summer cutting management of mulberry gardens was mostly extensive, and the first batch of silkworm species was generally raised less. some.

From January to June, the national silk output was 24,121 tons, a year-on-year decrease of 21.75%. Among them, the output of raw silk was 22,491 tons, a year-on-year decrease of 21.30%; the output of spun silk yarn was 1,630 tons, a year-on-year decrease of 27.53%. The output of silk and satin was 188.81 million meters, a year-on-year decrease of 13.39%. The output of silk quilts was 4.14 million, a year-on-year decrease of 37.51%.

Downstream domestic sales have entered the off-season. According to news from the Shengze region, the fabric market has recently performed stable transactions, mostly autumn and winter fabrics. The current inventory in this area is about 45 days, and the manufacturers' enthusiasm for starting work is generally maintained at 60-70%. With the deepening of the high temperature, the workers are not enthusiastic about production in the later period, and some manufacturers may have holiday operations. Poor enthusiasm for acquiring goods, cautious transactions in the overall market, and mediocre confidence in the later period, the wait-and-see atmosphere in the trade link is also strong. In addition, foreign markets have not shown any significant improvement. According to statistics from China Customs, the total export volume of real silk products nationwide from January to June was US$585 million, a year-on-year decrease of 34.6%. From January to June, the country’s total imports of silk products totaled US$103.1 million, a year-on-year decrease of 13.47%.

From the perspective of industrial economic indicators, from January to June, the main business income of the silk and silk textile industry and fine processing above designated size in the country was 26.487 billion yuan, a year-on-year decrease of 16.69%; the total profit was 540 million yuan, a year-on-year decrease of 32.37%; the number of enterprises There were 613, among them: 267 loss-making enterprises, with a loss of 43.56%; the total loss of loss-making enterprises was 513 million yuan, a year-on-year increase of 28.4%. The main business cost was 23.998 billion yuan, a year-on-year decrease of 17.15%; management expenses were 877 million yuan, a year-on-year decrease of 13.31%; financial expenses were 405 million yuan, a year-on-year increase of 3.30%. Total assets were 54.04 billion yuan, a year-on-year increase of 4.87%, of which: current assets totaled 30.64 billion yuan, a year-on-year increase of 4.35%; accounts receivable was 7.276 billion yuan, a year-on-year increase of 9%; finished goods inventory was 12.196 billion yuan, a year-on-year increase An increase of 13.51%; liabilities totaled 30.852 billion yuan, an increase of 4.23% year-on-year.

SunSirs analysts believe that the current lack of terminal consumption power has become the biggest pressure on the price of cocoon silk, and the off-season characteristics of the cocoon silk market in August are still more obvious. From the perspective of the domestic market, the gradual recovery has given a certain degree of boost to the cocoon silk market, but the industry’s overcapacity has become more prominent. Conventional products are still unsalable. Whether it is a weaving company or a trader, it is still facing difficulties in production and sales, and orders are not received. status. From the perspective of the export market, it is returning to normal and export orders will gradually pick up. However, the market is still worried about the extent to which orders can be restored, and consumption in textiles and apparel is more cautious. Domestic sales are off-season and export sales have not yet recovered, and the overall downturn of the industry has not changed. It is expected that the price of cocoon silk will remain weak in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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