Demand Side Lack Of Boost Cocoon Silk Price Pressure

According to the price monitoring of the business agency, the domestic dried cocoon market price rose first and then fell in June. As of June 23, the average market price was 94000 yuan / ton, up 4.44% compared with the beginning of the month.

The raw silk market price fluctuated downward. As of the 23rd, the average market price was 287500 yuan / ton, down 2.38% from the beginning of the month. At present, the price of dried cocoon is 91000 yuan / ton in Jiaxing of Zhejiang Province, 285000 yuan / ton of raw silk, 97000 yuan / ton of dried cocoon and 290000 yuan / ton of raw silk in Guangxi.

The fifth batch of spring cocoons in Yizhou have been listed one after another. According to some local cocoon purchasing units, the number of local fresh cocoons on the market has gradually increased in recent two days. Affected by the high temperature weather, the quality of this batch of fresh cocoons is average, and the current price is basically maintained at about 30-32 yuan / kg, and the purchase price is lower than the previous two batches. Compared with the same period last year, the purchase price of cocoon / kg in Chongqing decreased by RMB 7 / kg. The acquisition of more than 10 thousand kilograms of cocoons in Beidan area was completed on May. The south bank area will be purchased on June 25, and it is estimated that more than 500 tons (25000 kg) of spring cocoons can be purchased.

This year, the breeding date of summer silkworm in Jiaxing City of Zhejiang Province is June 19-20, which is basically the same as last year. Due to the low price of spring cocoon this year (mostly between 1600-1800 per kilogram), the serious aging of sericulture farmers, the small and arduous amount of summer silkworm and the less and less mulberry garden area, the city ordered 4658.3 summer silkworm eggs, with a year-on-year decrease of 771.7, 14.2%. Among them, Haining City, Haiyan County and Nanhu District of Jiaxing have not ordered summer silkworm eggs, and Tongxiang City has ordered 4450 summer silkworm eggs, The number of silkworm eggs decreased by 710, or 13.8%, on June 20, the same as last year. The number of summer silkworm eggs ordered by Xiuzhou District was 208.3, which was 61.7 and 22.8% lower than that of last year. The date of seed development was June 19, one day earlier than last year.

From the perspective of the recent downstream textile industry, the characteristics of off-season demand have become more obvious, the domestic market in June was less than may, raw silk trading atmosphere is relatively cold, silk wool is relatively easy to go. The overall wait-and-see attitude of the terminal consumption link is relatively strong, the processing enterprises still maintain the rigid demand for raw materials procurement, and the inventory gradually increases. Some factories cut production and production generally. At present, the operating rate continues to decline. At the same time, many enterprises plan to continue to have a holiday on the Dragon Boat Festival. At that time, the operating rate may still decline. From January to April in 2020, the total import and export volume of real silk goods was 473 million US dollars, a year-on-year decrease of 23.94%, accounting for 0.62% of China's total import and export of textiles and clothing. The export value of silk decreased by 13.291% to US $603.29 billion.

Business agency analysts believe that with the spring cocoon listed in succession, the cocoon has formed a certain support. However, the domestic textile industry gradually into the off-season, procurement remained tepid and the transaction was relatively flat. The foreign trade market situation is not clear, recovery is not obvious, resulting in orders still can not keep up, the demand side lack of boost, support for the price of cocoon silk is very limited, it is expected that the cocoon and silk market in July is under pressure and weak adjustment.