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SunSirs: Textile Market Enters off-Season, Chinese Cocoon Silk will Weaken and Adjust

June 11 2020 08:55:50     SunSirs (Linda)

According to SunSirs price monitoring, the domestic dry cocoon market has continued to rise since June. As of the 10th day, the average price of the dry cocoon market was 94,000 yuan/ton, up 4.44% from the beginning of the month.

The raw silk market is showing a trend of rising first and then falling. As of the 10th, the average price of the raw silk market was 290,000 yuan/ton, down 1.53% from the beginning of the month. With the full listing of spring cocoons across the country, the overall purchase price of silk cocoons has risen. Supported by the cost of raw materials, the overall price of cocoon silk on the spot has stabilized and strengthened. However, the downstream demand has not been significantly improved. The transaction has turned down and the price of raw silk has declined slightly.

In June, the fourth batch of spring cocoons in Yizhou, Guangxi began to be marketed in batches. It was learned from some local cocoon stations in the Shibei area that due to the impact of high-temperature rainfall weather, the fresh cocoons on the market were slightly moist, the cocoon layer was thin, and the quality of cocoons was generally The purchase price is around 32-34 yuan/kg. On the 6th, the silkworm science and technology service station in Jinxi Town, Chongqing, opened the scale to collect cocoons, which marked the official start of the spring silkworm cocoon acquisition in Qianjiang District. A total of 1,500 silkworm species were distributed in spring, with an estimated 1,200 silkworm cocoons and an estimated income of 2.5 million yuan. More than 4,000 spring silkworms raised in Xiuzhou District of Jiaxing, Zhejiang Province have been carefully reared by silkworm farmers for nearly a month, and spring cocoons have achieved a high yield. According to a sample survey of 23 silkworm farmers in four villages in two towns, the highest Zhang output reached 70 kg, the lowest was 47.5 kg, and the average Zhang output reached 56 kg, an increase of 2 kg year-on-year and an increase of 3.7%. The record high, the price of cocoon per ton (50 kg) was 1,770 yuan, an increase of 20 yuan or 1.1% year-on-year. The price of cocoon exceeded expectations, and the average income of silkworm cocoons was 1,982 yuan, an increase of 92 yuan or 4.9% year-on-year.

At present, it has entered June, and the traditional low season of the downstream textile market has arrived. Due to the lack of support from the demand side, most silk mills' accounts receivables and inventories have increased to varying degrees. The market has begun to fluctuate downward. At present, the spot market transactions are turning to desertion. Although China currently supports related policies frequently in order to promote consumption and enhance economic vitality, from issuing consumer vouchers, 2.5 days off days, to the stall economy, the intention of promoting employment, pulling consumption and reducing inventory is obvious. Some foreign countries have opened ports one after another and gradually resumed production. However, it is still impossible to judge that the inflection point has come. The global textile and apparel industry has suffered a critique, and it has been difficult for the demand to recover. From the perspective of import and export data, the total import and export of my country's real silk commodities from January to March was US$390 million, down 18.45% year-on-year, accounting for 0.74% of my country's total textile and apparel imports and exports. Among them, the export value was 341 million US dollars, down 18.4% year-on-year, and the import value was 48.927 million US dollars, down 18.81% year-on-year.

SunSirs analysts believe that the current terminal demand is still poor, which will restrict the cocoon silk industry from getting cold. In June, the characteristics of the off-season demand of the terminal textile industry will become more and more obvious, the market wait-and-see attitude is relatively strong, and the main demand for raw material procurement is maintained. At the same time, demand recovery in the European and American markets is relatively slow. Except for some orders, other places are basically at a standstill. The cocoon silk industry with exports as the main trading method will be in trouble, which will adversely affect the support of cocoon silk prices. There will be a weak adjustment.

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