Favorable Policies Stimulate Silk Prices To Recover Slightly

On July 17, the notice of Guangxi Zhuang Autonomous Region Industry and information department and other four departments on printing and distributing the financial subsidy work plan of Guangxi raw silk pledge guarantee loan promoted the downstream inquiry and transaction to some extent. Some manufacturers negotiated prices smoothly, and their positive intention to take goods increased. The market price of cocoon silk recovered slightly.

According to the price monitoring of the business agency, as of July 22, the average price of dried cocoon market was 90000, up 0.90% compared with the previous day. The raw silk market also showed signs of improvement. As of July 22, the average price of raw silk market was 270500 yuan / ton, up 0.74% compared with the previous day. At present, the price of dried cocoon is 91000 yuan / ton in Jiaxing of Zhejiang Province, 270000 yuan / ton of raw silk, 89000 yuan / ton of dried cocoon and 271000 yuan / ton of raw silk in Guangxi.

Last week, a small number of fresh cocoons were listed in Yizhou and Liucheng. According to some local cocoon stations, the purchase price of Yizhou is about 24-28 yuan / kg, and the purchase price has no fluctuation for the time being; the purchase price of Liucheng is about 29-31 yuan / kg, and the price based on quality will be lower. In Xincheng, the purchase of fresh cocoons in the first half of the year has basically ended, and sericulture farmers have begun to cut mulberry gardens in summer to prepare for raising autumn cocoons in the second half of the year. The peak period of Sichuan Mianyang summer cocoon market is coming to an end. According to some local cocoon stations, due to the influence of high temperature and rainfall, the quality of fresh cocoons on the market is average. At present, the average purchase price is about 27-28 yuan / kg. According to the quality, the purchase price of fresh cocoons with better quality can reach about 30 yuan / kg. In addition, the spring cocoon purchasing work in Qinglong Town of Chongqing has been fully completed, and the purchase price of this batch of spring cocoons is 36 yuan per kilogram.

In the middle of July, with the deepening of the off-season atmosphere in the industry, the consumer market as a whole is still depressed, showing obvious characteristics of the off-season. The demand side has not yet shown significant signs of recovery. At present, traders are mainly on the wait-and-see situation, and future orders remain light. From the perspective of textile industry, from January to June, the total retail sales of shoes, hats and knitwear in China totaled 512 billion yuan, a decrease of 19.6% over the same period. According to the statistics of the General Administration of customs, China's textile exports increased by US $5.103 billion to US $12.516 billion, representing a year-on-year increase of US $12.516 billion. Since the second quarter, the demand of China's textile industry, including the export of masks, has surged.

Business agency analysts believe that, under the support of Guangxi's release of the financial subsidy program for raw silk pledge guarantee loan, the overall price has risen slightly. However, the lack of back-end consumer power has become the biggest pressure on the price rise of cocoon silk. The raw silk of all grades is in general, and the downstream price depressing sentiment is still strong. In particular, the uncertain and unstable factors faced by foreign trade development have increased significantly. The export situation in the second half of the year is still complex and severe. The cocoon and silk industry, which takes export as the main trade mode, will continue to operate under pressure. It is expected that the price of cocoon silk is likely to weaken in the future.