Domestic Silk Prices Rose Crazily, Rising Thousands Of Yuan To Buy Coins.

Domestic cocoon raw silk prices have surged since the financial crisis in 2008. At present, the price of cocoon raw silk has risen to 300 thousand yuan / ton, the highest price in nearly 15 years.

"Silk capital", a salesperson of China's Eastern Silk Market in Shengze, sighed, "raw silk prices have been rising and rising too high."

The reason behind this is the imbalance between supply and demand, and the droughts in Sichuan, Jiangxi and other regions have greatly reduced production.

What we need to pay attention to is that the cocoons are in short supply. The whole silk industry chain has already discovered that "flour is expensive and bread" - the price of cocoons and silk is upside down by 20 thousand yuan, and most silk reeling enterprises are facing the dilemma of no rice pot.

In the whole silk industry chain, sericultural farmers generally benefit from this round of price rise, but the silk reeling plant as an intermediate link faces the highest risk.

Last year, the price of silk pajamas priced at 300 yuan was set to 360 yuan in early summer this year.

In a silk shop on Shun Xin Road, Shengze, the silk town, the salesperson told the Morning Post reporter: "raw material prices have gone up too hard, and products can't rise without price. You don't buy them now. In summer, the peak season is sure to go up."

Behind the rise of silk clothing is the price of raw silk raw silk, which is rising all the way. It is tight by supply and demand, strong demand for economic return and weather conditions. Cocoon raw silk prices have climbed steadily, reaching the highest level in 15 years.

The "Shengze silk chemical fiber index" of China's Ministry of Commerce showed that the price of cocoon and silk products reached the peak value in the past few years at the end of April.

The Ministry of Commerce, China Shengze silk chemical fiber index is known as the barometer of the industry. In April, the index of cocoon and silk products in the index was generally judged to be 104.8387, while in March, the index was only 90.625.

In addition to the high price of silk products and the exclamations of the market, what is more noteworthy is that because of the shortage of silkworm cocoons in the production of silk raw materials, the abnormal phenomenon of "flour is more expensive than bread" has been discovered in the entire silk industry chain. The price of cocoons and silk is upside down by 20 thousand yuan, that is, the price of dried cocoons needed to produce one ton of real silk is the highest price being fry to 300 thousand yuan, while the same hurricane's raw silk price has risen to 280 thousand yuan / ton, which makes most silk reeling enterprises face the situation of huge increase in production cost and even no rice pot.

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The price of raw silk is up 1000 yuan per ton.

China is a large silk country and accounts for 80% of the world's total output. Among them, Shengze is one of the largest silk producing areas in China, with the Oriental silk market known as "China's first cloth market". The basic data of the "Ministry of Commerce of China Shengze silk chemical fiber index" is the business operator of China's Eastern Silk Market.

Shengze is located in Wujiang City, south of Suzhou, more than 60 kilometers away from Suzhou.

China's Eastern Silk Market is located in the west of the town of Yao Jiaba bridge on the southeast side of Shengze town. The market is modeled on the layout of Ming and Qing markets.

According to the Eastern Silk Market Management Committee, Shengze has been one of the "four big silk cities" since ancient times, and the silk export volume of the town accounts for 1/6 of China's silk export volume.

At present, there are more than 2600 production plants in Shengze, and the market has gathered more than 6500 textile firms from all over the country to manage more than 3000 varieties of silk and chemical fiber fabrics.

The morning paper reporter randomly consulted several merchants in the Eastern Silk Market, and the salesmen shook their heads when they talked about the market of raw silk materials.

Dingsheng silk Co., Ltd., located in Shengze, is the first pure private silk enterprise and one of the sampling enterprises of the silk chemical fiber index. Wu Jianhua, general manager of the company, told the Morning Post reporter that the price of raw silk has not stopped since the financial crisis in 2008. At present, a class of white silk has risen from 170 thousand / ton last year to 300 thousand / ton.

Wu Jianhua said: "especially in the last six months, the price of raw silk is rising by 1000 yuan, 2000 yuan per ton per day. The agreement that used to postpone payment is useless. Now we must take cash in line to buy silk."

The rising price of raw silk stems from the rise of cocoons.

According to Fan Ganqun, consultant of the Ministry of Commerce's China Shengze silk and chemical fiber Index Office, the cocoon price in 2008 was 10 yuan / kg, but now it has more than 30 yuan / kg.

Fan Ganqun said that in the past, there were many farmers in silkworms in Jiangsu and Zhejiang provinces. The mulberry garden in Wujiang had been as high as 100 thousand mu, but with the increase of factories, the silkworm breeding base had been pferred. There were still some parts in Northern Jiangsu and southern Zhejiang, but the main mulberry fields were in Guangxi and Sichuan. In the spring of 2010, due to the influence of the Western drought factors, the first spring cocoon supply was tight, and the prices of fresh cocoons listed were raised. "At the highest time, the price of spring cocoons in Guangxi had rushed to 36 yuan / kg, and now a little down, to 30 yuan / kg, it is still very high."

Wu Jianhua said that he had been running in Guangxi and Sichuan a few days ago, one was cocoon collecting, and the other two was to communicate with his colleagues about the price of cocoons.

He said that people in the industry believed that with the second and third batch of spring cocoons going on the market, the situation of tight supply will gradually slow down, and the price of fresh cocoons may drop slightly. "But there can be no big adjustment."

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"Flour is more expensive than bread."

Facing the rise of raw materials, several families are unhappy.

Sericultural farmers generally benefit from this round of price rise, but reeling mills have the highest risk in the whole industry chain as the intermediate link.

Data from the China Silk Association show that in the 1-2 month of this year, the loss of the silk industry was as high as 38.6%, which was higher than the average loss level of 35.4% of the national textile industry.

According to Fan Ganqun, the profit of raw silk materials in the middle reaches of the industrial chain has been squeezed most seriously by the price of raw materials. "There were 12 reeling factories in Shengze, and now there are only 3."

Wu Lizhen, deputy director of the Jiangsu Hua Jia Investment Group Office, said that sometimes cocoons rise too fast, the price pmission to the industrial chain will appear cocoon silk "hanging upside down" phenomenon, facing the dilemma of receiving and selling, and the silk reeling plant will surely lose money.

Jiangsu Hua Jia group is the only silk enterprise in Shengze that has opened up the industrial chain of silk upper and lower reaches. It has formed a complete silk industry chain from silkworm breeding mulberry to silk reeling, and then to garment making and selling.

But in the silk reeling process, Hua Jia still felt the cost pressure.

"Our general manager has gone to Guangxi to collect cocoons. Even if we have agreed farmers in Guangxi, the general manager will not be able to do so because of the pricing and quantitative issues."

Wu Lizhen said that Hua Jia's demand for silk is about 10 million tons per year. The cocoons purchased by the agreement are far from enough to meet the needs of the company, or to buy the cocoons on the market at a high price. This is the main reason for the increase in the cost of products.

In addition, because of the difficulty of recruiting workers, the wages of the silk industry generally rose by 20%, and also increased the cost of products.

For a relatively large number of silk fabrics processing factories in Shengze, the impact of raw materials rising on enterprises has polarized.

According to Fan Ganqun, raw materials rise is beneficial to the factory with stock, but the amount of capital needed for inventory is large. Small factories can not stock up. Therefore, the low price orders are processed while the raw silk with high price is collected, and the risk of loss is great.

For large factories with inventory, the impact of this increase is relatively small.

Wu Jianhua, general manager of Dingsheng silk, said that now the company has a certain stock. Raw materials can be avoided by the end of July to a certain extent.

But Wu Jianhua said that the fabric they sell now has been rising, not only the pressure of raw materials rising, but also the pressure of other costs.

According to Wu Jianhua, the existing shuttle machines are basically in a state of shutdown, because the traditional silk industry requires a high degree of familiarity with the workers, and the chemical fiber industry requires less skilled workers. Therefore, in order to facilitate the recruitment of workers, it is necessary not only to increase the wages of workers, but also to increase automation equipment.

"Just bought 8 new machines, 500 thousand yuan per unit, which costs a lot of fixed costs."

Wu Jianhua said.

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Worries in May and June

"Maybe the whole market feels that the price of raw silk materials has gone too crazy and may be over, so wait-and-see sentiment has begun to appear."

Wu Jianhua told the Morning Post reporter that the products of Dingsheng silk 70%-80% were exported, mainly exported to Spain and France. However, after the price of raw silk reached a high level in late April and a slight decline began in early May, the order of foreign merchants was obviously less.

Fan Gang, a consultant to the office of the Ministry of Commerce of China Shengze silk chemical fiber index, analyzed that China is a large exporter of silk and silk fabrics.

In terms of export sales, the biggest factor affecting foreign purchases is the fluctuation and quality of raw silk prices.

Because the demand for silk and silk is basically fixed within a certain period of time, the price drop will encourage them to wait and see. The price increase will promote the purchasing speed of foreign businessmen, thus further promoting the rise of silk price.

"Foreign traders have obviously seen wait-and-see sentiment in May."

Wu Jianhua said that the orders received by the company before May were many, but the main reason was that the merchants who had been waiting at the beginning of the year saw that they had been rising, so they had to place the order quickly, and now the price has gone up.

Wu Jianhua expressed concern about the prospect of the industry. He said that the peak season for silk fabrics should have turned into a slack season. If there were not many orders in the next 6 and July, it would be a good time to miss the sales season in August, following the European holiday in Europe.

"Coping with rising raw materials is actually a coping strategy."

Wu Jianhua introduced several best-selling varieties of silk products. He said that most of them were new varieties, and their prices were generally high. They also had advantages compared with their competitors.

He said: "we must adjust the product mix, not only traditional products, innovative products, but also deep processing, to take the high-end line."

In the interview with the heyday silk company, the Morning Post reporter also learned that last year, Wu Jianhua bought the hundred years old factory of the silk industry -- all the silk weaving machines, rapier looms and their supporting equipment of the Suzhou Dong Wu silk weaving factory limited liability company, and introduced the management personnel, technicians and operators of Soochow.

"It is said that the" Soochow "brand will also be auctioned. If the price is right, we will buy it and do the finished product.

Wu Jianhua said that for high-end products, the price of raw materials is not sensitive to rising.

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Ways to avoid rising prices of raw materials

The development of products to deep-processing is the best way to avoid floating raw materials.

According to industry insiders, raw silk accounts for only a small part of the final price of high-grade silk clothing, such as silk pajamas priced at 300 yuan / set. According to the average silk fabric from last year's 28 yuan / meter to 35 yuan / MI Lai, the rise of pajamas price 20% not only offset the pressure of raw materials rising, but even thickened profits.

Fan Ganqun told the Morning Post reporter that the silk industry usually has a 50% Law: that is, the price of raw materials has been pferred to the consumer's hands about 50% of the reasonable price. Since 2008, the price of silk has nearly doubled, and the price of silk has generally increased by 20%-50%. Therefore, the price of consumer goods in silk is generally up this year.

"Actually, I think the price of silk is going up."

Fan Gang group analysis, in the entire fabric market, silk accounts for only 1.2%, and the price of the fabric is scarce, and the price rises as a whole.

Fan Ganqun said that in the Jiangnan silkworm farmers, there is a common saying in ancient times: "a jin of silkworms seven Jin rice", so the price of cocoons in the industry is generally more reasonable than 28-30 yuan / kg, while the price of a kind of white silk can be maintained at 250 thousand yuan / ton, and the average silk price is 32 yuan / meter, so that the profit of the upstream and downstream industry chain can be guaranteed to a certain extent.