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SunSirs: Insufficient Transaction Activity, Weak Uptrend in China's Recent Cocoon Silk Market
September 18 2020 07:46:24SunSirs(Linda)

According to SunSirs price monitoring, the domestic cocoon silk market fluctuated slightly in September. As of September 15, the average price of raw silk in the market was 286,750 yuan/ton, an increase of 0.79% from the beginning of the month. The average market price of dry cocoons was RMB 90,850/ton, up 0.94% from the beginning of the month. The current price of dry cocoon in Guangxi is RMB 86,700/ton, and the price of raw silk is RMB 286,500/ton. At present, the cocoon silk market is showing a slow market with limited decline and limited growth. At the beginning of the month, driven by the purchase price of autumn cocoons, the market was supported to a certain extent, but the overall cocoon silk market seems to have declined compared with August. The upward trend of the market is weak, the market is in a wait-and-see state, and the overall transaction activity is insufficient.

Recently, the second batch of autumn cocoons in Yizhou began to go on the market. On September 14th, it was learned from some local purchasers that due to the alternation of rainfall and high temperature weather, the quality of cocoons at this stage is average, and the unwinding rate is about 55%-65%. The purchase price In terms of quality, the price is currently basically maintained at about 30-34 yuan/kg, which is down from the first batch of prices. At the same time, the third batch of autumn cocoons in Xincheng continued to be listed. Due to the poor quality of fresh cocoons on the market and the continued downturn in the cocoon silk market, the purchase price has fallen from the previous period, and is currently maintained at around 29-30 yuan/kg.

At the same time, Yunnan Shiyang and autumn cocoons in Xiangyun area continue to be listed. Due to the good quality of the listed cocoons and the local purchase of fresh cocoons by some Guangxi merchants, the emergence of cocoon grabbing has also raised prices to a certain extent, and the purchase price of Shiyang has maintained At 40-41 yuan/kg, Xiangyun is around 38 yuan/kg.

In addition, the listing of the first batch of autumn cocoons in Mianyang, Sichuan ended, and the overall purchase price showed a trend of higher and lower prices. The purchase price was based on quality; it is understood that this batch of listed cocoons is of good quality, with a relief rate of about 70%. The initial RMB 32-36/kg is raised to around RMB 39-42/kg.

The downstream traditional textile market has recently become smoother for some fabrics, market confidence has gradually recovered, and textile companies' orders have begun to improve. The stocks accumulated in the previous period and the dumping of goods are still the main theme in the current market, and the improvement is limited to a limited number of varieties. The consumer market still has little improvement in the short-term, and the market has not received a direction signal. Therefore, the wait-and-see atmosphere is still strong in the transaction, and the transaction is cautious. Except for rigid demand, the inquiry and purchase are not active.

In terms of exports, from January to July, China’s total imports and exports of silk products were US$760 million, a year-on-year decrease of 35.57%, accounting for 0.44% of my country’s total textile and apparel imports and exports. Among them, the export value of real silk products was 633 million US dollars, down 39.01% year-on-year, and the import value was 126 million US dollars, down 10.18% year-on-year.

SunSirs analysts believe that although the price of cocoon silk is supported by the cost of raw materials, the strength is too small and lack of transaction volume to cooperate, and the consumer market is light to stop the market rebound. Although the textile market has entered the traditional peak season, it is already halfway through September, and the expected 'Golden September' does not seem to come as scheduled. Downstream companies are cautious in purchasing, and mostly maintain the buy-as-you-go plan. Sales in the terminal consumer market are still poor, and most companies are facing greater production pressure. Therefore, it is difficult to give a strong boost to the market. It is expected that the cocoon silk market will fluctuate and run mainly in the short term.

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