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SunSirs: Favorable Policies Stimulate China's Cocoon Silk Prices

July 23 2020 08:21:26     SunSirs (Linda)

On July 17, the Guangxi Zhuang Autonomous Region's Department of Industry and Information Technology and other four departments issued a notice on the work plan for financial subsidies for Guangxi raw silk pledge guarantee loans. This helped boost downstream inquiries and transactions, and some manufacturers negotiated prices smoothly , The positive intention to get goods increased, and the market price of cocoon silk picked up slightly.

According to SunSirs price monitoring, as of July 22, the average market price of dry cocoons was 90,000, an increase of 0.90% from the previous day. The raw silk market has also shown signs of improvement. As of July 22, the average price of raw silk in the market was 270,500 yuan/ton, an increase of 0.74% from the previous day. At present, the price of dry cocoon in Jiaxing, Zhejiang is 91,000 yuan/ton, the price of raw silk is 270,000 yuan/ton, the price of dry cocoons in Guangxi is 89,000 yuan/ton, and the price of raw silk is 271,000 yuan/ton.

Last week, a small amount of fresh cocoons were listed in Yizhou and Liucheng. According to some local cocoon stations, the purchase price in Yizhou is around 24-28 yuan/kg, and the purchase price has no fluctuations; the purchase price in Liucheng is 29-31 yuan/kg. Around, the price is based on quality, and the price of poor quality will be lower. The purchase of fresh cocoons in Xincheng was basically completed in the first half of the year, and silkworm farmers have begun to cut the mulberry fields in summer to prepare for raising autumn cocoons in the second half of the year. The peak period of summer cocoons listing in Mianyang, Sichuan is coming to an end. According to some local cocoon stations, the quality of fresh cocoons on the market is average due to the influence of high temperature and rain. The current average purchase price is about 27-28 yuan/kg. The purchase price of some fresh cocoons can reach about 30 yuan/kg. In addition, the purchase of spring cocoons in Qinglong Town, Chongqing has been fully completed, and the purchase price of this batch of spring cocoons is 36 yuan per kilogram.

Entering mid-July, as the industry's off-season atmosphere deepened, the overall consumer market remained sluggish, showing obvious off-season characteristics. There are no significant signs of recovery on the demand side. At present, traders mainly wait and see, and the market outlook remains light. From the perspective of the textile industry, the total national retail sales of shoes, hats, and knitting textiles from January to June was 512 billion yuan, a decrease of 19.6% over the same period. In terms of exports, according to the latest statistics from the General Administration of Customs of China, from January to June, the cumulative export value of China's textile and apparel was $125.188 billion, an increase of 3.16% year-on-year, of which the cumulative export value of textiles was $74.103 billion, an increase of 27.81% year-on-year; The cumulative export value was US$51.084 billion, a year-on-year decrease of 19.39%. Since the second quarter, with the surge in the purchase of defense materials in Europe and the United States, textiles including masks have become an important support for our industry's exports.

SunSirs analysts believe that under the support of Guangxi's release of financial subsidies for raw silk pledge guarantee loans, the overall price has risen slightly. However, the lack of back-end consumption power has become the biggest pressure for the price increase of cocoon silk. Raw silk of all grades is generally sold, and the downstream price is still relatively strong. In particular, the uncertainties and unstable factors facing foreign trade development have obviously increased. The situation of foreign trade exports in the second half of the year is still complicated and severe. The cocoon and silk industry, which uses exports as the main mode of trade, will continue to operate under pressure. It is expected that the price of cocoon silk is more likely to weaken in the future.

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

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