Market Pessimism Thick April Cocoon Silk Price Decline Over 10%

According to the price monitoring of the business community, the domestic cocoon silk market continued to decline in April. As of April 25th, the average price of dry cocoon market was 86500 yuan / ton, 10.69% lower than the beginning of the month, and the average price of raw silk market was 267250 yuan / ton, down 11.80% compared with the beginning of the month. At present, the price of dry cocoon is 85000 yuan / ton in Jiaxing area of Zhejiang Province, the price of raw silk is 260000~280000 yuan / ton, the price of dry cocoon in Guangxi area is 83000 yuan / ton, and the price of raw silk is 274000 yuan / ton. The trading atmosphere in the spot market is still cold, and raw silk and silk fabrics are still difficult to carry.

This week, the first batch of Xincheng spring cocoon listing came to an end. As the area where the earliest spring cocoons were listed in Guangxi, the quality of the fresh cocoons sold in Xincheng was better, and the purchase price was higher and lower, falling from just 30 yuan / kg to 22-26 yuan / kg. The purchase price of silkworm cocoons in Napo County is 20 yuan per catty of first class silkworm cocoon, two yuan per catty of grade two cocoons and 13 yuan of three cocoons per catty. Due to public events, the purchasing price of cocoons this year is lower than that of the same period last year. Yizhou District continued to sell small quantities of spring cocoons, and the purchase price was 22-26 yuan / kg.

Downstream textile production and marketing slightly sluggish, the trading atmosphere is still not high, the market in addition to protective fabrics, other conventional fabrics are light, gray fabric enterprises every day to take a small quantity of goods, mostly for a small list of thousands of meters, the list has disappeared. Due to the shortage of orders in grey fabric enterprises, most enterprises only have orders for 10 to 15 days. Orders less manufacturers inventory continued to rise, industry inventory in Shengze rose to about 43 days. Or to reduce the start up, facing the upcoming May 1 holiday, some enterprises have begun to take a vacation. At present, the market has been reduced to 6-7. At the same time, the cancellation of foreign orders is frequent, most enterprises have almost stopped, and the consumption situation and market confidence have dropped sharply.

In terms of imports and exports, the total import and export volume of China's real silk commodities was 255 million US dollars in 1-2 months, down 24.18% from the same period last year, accounting for 0.74% of the total import and export volume of textiles and garments in China. Exports amounted to US $225 million, down 24.02% compared to the same period last year. In February, the export of China's silk fabrics declined significantly, resulting in a decline of 10-30% in the three categories of exports in 1-2 months, of which the number of finished silk products dropped the most, reaching 30.26%. In 1-2 months, the imports of silk fabrics amounted to US $29 million 513 thousand, down 25.41% from the same period last year. In the textile industry, the total export volume of textiles and clothing in China in the first quarter of 2020 was 45 billion 260 million US dollars, which was 17.7% lower than the same period last year, of which 22 billion 690 million US dollars in textile exports, 14.6% lower than the same period last year, and 22 billion 570 million US dollars in clothing exports, down 20.6% over the same period last year.

Business analysts believe that this year's textile industry is hard to see the traditional "gold, three silver four" scenery. Under the current situation, orders for textile and garment export enterprises and suppliers will be reduced or will continue. Domestic demand recovery is also relatively slow, generally speaking, the market's pessimism is more intense. It is expected that the cocoon silk market will continue to bear pressure.