Market Low Season Atmosphere Shows Cocoon Silk Price Will Be Weak Adjustment

According to the price monitoring of business associations, this week (12-6 June, 19) the domestic dry cocoon market fell slightly, closing the 19 market average price in the 94000 yuan / ton, compared with the beginning of the week fell 0.79%.

The raw silk market showed a slight rise, closing 19 days, the average price of the market was 292500 yuan / ton, 0.69% higher than the beginning of the week. At present, the price of dry cocoon in Zhejiang Jiaxing area is 92000 yuan / ton, the raw silk price is 290000 yuan / ton, the dry cocoon price in Guangxi area is 96000 yuan / ton, and the raw silk price is 295000 yuan / ton.

Since the spring of June 6th, the Chongqing Qianjiang district has made many measures to ensure the steady acquisition of spring cocoons and safeguard the interests of sericultural farmers. By June 13th, 353780 kg of fresh cocoons had been purchased in the whole region. The purchase price of spring cocoons in Fengdu County of Chongqing decreased year after year, and the purchase price was 25 yuan / kg, compared with 32 yuan / kg in the same period last year, 7 yuan per kilogram. At present, the purchase of spring cocoons in the north shore area has been completed in June 10th, and more than 1000 spring (50 thousand kilograms) of spring cocoons have been purchased. The south bank area will open in June 25th, and it is expected to buy more than 500 tons of spring cocoons (25 thousand kilograms). In Yingde City, Guangdong's traditional sericulture production area, the second batch of cocoons is listed, and the price is generally around 26-28 yuan per kilogram.

At present, the production and marketing pressure of raw silk is higher than that of May. Entering the middle of June, the textile and weaving market was gradually deepening in the off-season atmosphere, and the stock carrying speed was not as good as before. Lack of market demand, the current number of high quality raw silk turnover has declined, and the transaction is mainly based on small batches. Generally speaking, there is a brand gap between manufacturers, and there is a slight difference between different customers in the factory, but the price is still struggling. It is still necessary for foreign markets to resume orders for foreign trade for a long time. Export has not yet opened up an effective situation. For example, the middle and low grade raw silk, the price from the factory is not low according to the cocoon price, but the shipment price is not high. It affects the enthusiasm of the trade and the sales operation is not smooth.

In the 1-4 months of 2020, the total import and export volume of real silk goods was 473 million US dollars, down 23.94% from the same period last year, accounting for 0.62% of the total import and export volume of textiles and clothing. The export volume of real silk goods was 413 million US dollars, down 23.91% compared with the same period last year, and the import volume was 60 million 329 thousand US dollars, down 24.12% compared with the same period last year.

Business analysts believe that domestic production has gradually returned to normal, but the textile industry is still facing a grim situation, especially in the recent cocoon silk market in the off-season atmosphere, turnover momentum is obviously insufficient, rigid demand is the main, orders can still maintain a small quantity of goods, but the subsequent connection is more difficult, spinning enterprises to maintain lower start-up, inventory slow climb. At the same time, there are still many uncertainties in foreign trade orders. It still takes time to recover, and the market is not optimistic about the market outlook. It is expected that the cocoon silk market will be dominated by weak adjustment.