SunSirs: The Demand in Peak Season is not Strong, Price of Cocoon Silk Remains Stable

The domestic price of cocoon silk has remained stable recently. As of September 23, the average price of dry cocoon market was 150,000 yuan/ton, which was flat on a week-on-week basis, up 65.11% year-on-year; the average price of raw silk market was 442,000 yuan/ton, which was flat on a week-on-week basis, up year-on-year 54.55%.

Recently, the "golden cocoons" raised by silkworm farmers in Yanshan Village, Jinjia Township, Peng'an County, Nanchong City, Sichuan Province ushered in the harvest season. The purchase price is about 20% higher than that of ordinary white silkworm cocoons. It is understood that the county will release 3.5 silkworm seeds this year. There are more than 10,000 copies, and the output value of silkworm cocoons is expected to exceed 50 million yuan. At an average price of 56 yuan/kg, Lezhi spring cocoons set a new record in the history of Lezhi mulberry breeding. At present, the early autumn silkworm cocoons ushered in a bumper harvest again, and the average price continued to run at a high level. The newly-built town in Fenggang County, Guizhou Province has 3,100 mu of mulberry orchards and more than 600 sericulture farmers. Since the beginning of this year, villages in the town have produced 1,400 kilograms of silkworm cocoons, with an average price of 46 yuan/kg.

In the downstream textile market, domestic weaving enterprises in Jiangsu, Zhejiang and other places have curtailed electricity, printing and dyeing factories "double reduction and double control", "Golden September Silver October" and insufficient fineness, the terminal loom load quickly dropped to 59.24%. Near the National Day holiday, there are still not many orders in hand, some of which are only 5-10 days, and more orders are in 1-2 months. In terms of exports, the continued increase in ocean freight rates, prolonged transportation turnaround time, and increased logistics costs have put pressure on textile and apparel export orders.

The current traditional peak season for demand is not strong, and new orders are not followed up. There is still no sign of Christmas orders. The overall market is cautious and wait-and-see attitude towards the market outlook. It is expected that the cocoon silk market will remain stable before the National Day holiday.

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