SunSirs: Supported by Cost, Raw Silk is Expected to Continue to Rise

SunSirs: Oct 15

According to the price monitoring of SunSirs, the market prices of domestic dry cocoon have rose sharply in October. On Oct 15, the average market price was 138,250RMB/t, 5.53% higher than that of the beginning of October, 4.33% lower year on year. The raw silk market showed a slight correction in the middle of September, and boosted by raw materials, it kept a rising trend after entering in October. On Oct 15, the market average price was 411,000 RMB/t, 2.75% higher than the beginning of the month, 4.53% lower year on year.

Recent market prices of cocoon and silk in India (INR/kg)

The Indian market price (up to Oct 14): the price of the hybrid cocoon was 240-430INR/kg, the price of the bivoltine cocoon was 900-2,250INR/kg, the price of the polyvoltine cocoon was 340-370INR/kg, the price of the bivoltine silk was 2,750-3,500INR/kg. The price of the hybrid cocoon decreased. The price of the bivoltine cocoon increased 52.54%. The price of the polyvoltine cocoon decreased. The price of the bivoltine silk increased slightly. (1INR = 0.099RMB)

The autumn cocoon in the main producing areas like Guangxi continues to come in, and the market atmosphere continues to be warm. The fifth batch of autumn cocoons in Xincheng, Guangxi have entered into the peak period. The quality of fresh cocoons is good, and the price is about 53RMB/kg, with little change in price. The fourth batch of autumn cocoons in Yizhou have entered into the market successively, and a small number of autumn cocoons in Desheng district have entered into the market, with the purchase price of about 56-57RMB/ kg. Due to the small amount at present, the purchase price is not representative of the quality of fresh cocoons. It is expected that Yizhou’s large quantities of autumn cocoons will enter into the market on Oct 16. The city is about the 16th. Due to the lack of summer cutting of some mulberry leaves in the early stage and the influence of the current dry weather, there is a phenomenon of insufficient mulberry leaves, the amount of autumn cocoons will be reduced in the future.

During the national day, the purchase of raw materials in the weaving sector was less, but the desire was released, the domestic sales of raw silk was active, and the overall price was higher than that before the festival. Some weaving manufacturers have raised the prices of silk, price range varies by variety. However, terminal sales still have been weak. With the arrival of shopping Carnival days such as double 11 and double 12, downstream demand and terminal sales may be much better.

On the whole, the analysts of Sunsirs believes that cocoon prices continue to be strong after the long holiday, and silk prices gradually fill the gap in September. In the second half of the year, the situation of cocoon production gradually became clear, and the shortage of raw materials made the purchase prices of fresh cocoon higher. However, the export of downstream silk factories is not smooth, the purchase intention of silk factories is not strong, and the purchase is mainly cautious. Therefore, only when the real demand of downstream enterprises recovers, can the whole industrial chain run upward. Of course, the double 11 e-commerce season, Christmas stocking season, and silk cotton quilt selling season are also worth looking forward to. To sum up, it is expected that the short-term cocoon silk market will still show a strong trend of swinging.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.