Price trend

According to the price monitoring of SunSirs, this week (11.14-11.18) the domestic raw silk market maintains a volatile and weak trend. As of November 17, the average price of dried cocoons in the spot market is 145,000 RMB/ton, down 0.68% from last week and down 1.36% year on year; The average price of raw silk 20/22 on the spot market is 430,025.00 RMB/ton, down 1.03% from last week and down 2.72% year on year.

Analysis review

At the end of recent years, the industry has become more desolate, and the early cost support is not obvious. The phenomenon of cocoon silk hanging upside down is still serious. In terms of spot goods, the downstream continue to take goods on demand, and the market is basically stable. The atmosphere of spot trading and investment is stable, but slightly fades. The middle and low grade raw silk continue to be traded at the monthly spot price, with a general atmosphere.

Fresh cocoons are listed. The listing of silkworm cocoons in most southern regions has come to an end. The factories have basically stopped or will stop purchasing. The national silkworm production will be fully completed this month.

In the downstream, textile enterprises continue to accumulate their inventories. Since October, domestic outbreaks have been sporadic, and the epidemic situation in Beijing, Guangzhou, Tianjin, Zhengzhou and other key cities has become more severe. The epidemic situation has led to sluggish demand. In addition to the recent closed management in some regions, downstream procurement has significantly depressed prices, further compressed profit margins, and the turnover of silk, silk, cotton and other products continues to be weak. The Spring Festival holiday is earlier this year, and probably the pressure on enterprises to collect money will also be advanced.

Market outlook

Analysts from SunSirs believe that with the completion of the nationwide cocoon harvesting and drying, the raw silk cost is basically strengthened. The "Double 11" e-commerce season has ended. Toward the end of the year, the terminal textile sector has entered the off-season, and raw materials are also mainly purchased on demand. In addition, overseas orders decrease, and the overall export situation is severe, so the overall terminal demand remains weak. Overall, the cocoon silk market will continue to bear pressure.

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