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SunSirs: Downstream Market Continues to Slump, Chinese Cocoon Silk Prices Continue to be under Pressure in July

July 10 2020 11:34:00     SunSirs (Linda)

According to SunSirs price monitoring, Chinese cocoon silk market prices have rebounded since May due to domestic orders and cocoon support, but the pressure on the fundamentals of the industry increased in the middle and late June, and the arrival of the off-season, both domestic and foreign trade markets Under pressure from demand, prices began to fall. In July, the dry cocoon market continued its weakness. As of July 10, the average domestic market price was 89,500 yuan/ton, down 5.79% from the beginning of the month.

The raw silk market price also fluctuated downwards. As of July 10, the average market price was 271,000 yuan/ton, down 7.03% from the beginning of the month. At present, the price of dry cocoons in Jiaxing, Zhejiang is 90,000 yuan/ton, the price of raw silk is 260,000 yuan/ton, the price of dry cocoons in Guangxi is 89,000 yuan/ton, and the price of raw silk is 277,000 yuan/ton. In the international market, as of July 8th, India's hybrid cocoons are 135-263 rupees/kg, two cocoons are 400-450 rupees/kg, more cocoons are 300-325 rupees/kg, and two silks are 2650-3300 rupees/kg. (1 rupee = 0.0936 yuan)

At the beginning of July, the fifth batch of silkworm cocoons in Yizhou, Guangxi and other places continued to be listed. Most silkworm farmers chose to start the summer mulberry garden after the end of this batch. At some of the cocoon stations in Qingyuan Town, Yizhou, the price of cocoon reeling received is generally around 27-28 yuan, and the purchase price of the double-cocoon for the production of Shuanggong cotton is about 27 yuan per kilogram. The fifth batch of silkworm cocoons in Yizhou Tongde Films is coming to an end. The purchase price is generally around 22-28 yuan per kilogram, and the price is generally reflected. The fifth batch of silkworm cocoons was listed in Yizhou Desheng Films. Some cocoon stations strictly collected the quality of cocoons, reflecting the low volume of listing. The quality of fresh cocoons received was generally better. The purchase price was around 27.4 yuan per kilogram. The quality of fresh cocoons received by some cocoon stations is quite different, and the price is around 22-28 yuan per kilogram. The fifth batch of silkworm cocoons of Yizhou Fulong Tablets is gradually on the market, with prices generally ranging from 24-27 yuan per kilogram. Also in Huanjiang County, the purchase price of fresh silk cocoons is generally around 22-28 yuan per kilogram.Erchun Cocoon in Gao County, Yibin City, Sichuan Province is on the market, with good quality and high yield, with an average yield of more than 45 kg. After the 2 yuan award is added, the price is generally above 37 yuan per kilogram and the highest is 41 yuan. The major cocoon stations in Yangcheng County, Shanxi Province, have successively opened scales to purchase fresh cocoons. More than 6,000 spring silkworms have been sown this year. It is estimated that more than 250,000 kilograms of cocoons will be produced. The unit price of spring cocoons is about 40 yuan/kg. The first batch of summer cocoons in Song County, Henan Province, has also been opened for scale acquisition.

It is about to enter the midsummer, the main production area will be summer cutting mulberry fields, and the listing of silkworm cocoons will be suspended soon. At the current stage of the traditional low season in the textile industry, downstream demand is significantly weaker than in June, and the market trading atmosphere is not good. The overall domestic market market is weak, export orders have been unsatisfactory, maintaining inquiry and small-batch proofing orders, there is pressure on the return of funds, and it is still mainly based on use and purchase. The off-season industrial chain is once again overshadowed, and weaving companies generally report slower shipments and an increase in inventory.

The import and export data of domestic silk commodities show that from January to May, China's total import and export of real silk commodities was $559 million, a year-on-year decrease of 29.81%, accounting for 0.52% of China's total textile and apparel imports and exports. The export value of real silk commodities was 484 million US dollars, a year-on-year decrease of 30.52%, accounting for 0.49% of China's textile and apparel exports. From January to May, the import value of real silk commodities was US$75.326 million, a year-on-year decrease of 24.84%, accounting for 0.82% of textile and apparel imports.

SunSirs analysts believe that the continued downturn in the downstream market has become the biggest pressure on cocoon silk prices. There is no good news to be released at home and abroad. Due to the superposition of public health events and the arrival of the traditional off-season, the raw silk spot market is currently difficult to sell, and the transaction momentum is obviously insufficient. The actual transaction price is more than negotiable. In the current off-season domestic sales and sluggish external sales, merchants purchase on demand, market demand is weak, product inventories continue to increase, the overall wait-and-see dominant, the fundamentals are flat, lack of signs of rebound. Taken together, it is expected that the price of cocoon silk will continue to fluctuate downward.

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