Home / Knowledge / News / Textiles / Filature factories in dilemma as silk prices lower than cocoon
Filature factories in dilemma as silk prices lower than cocoon
Aug '11
Chinese filature factories are witnessing a strange phenomenon wherein the cost of cocoon needed for producing one ton of raw silk is more than the price at which one ton of raw silk is being sold in the market.

The price of cocoons soared to touch a new high of 430,000 Yuan/ton earlier this year, but the market crashed after July and the prices fell to about 330,000 Yuan/ton.

It is estimated that for production of a kg of raw silk, 8 kg of fresh cocoon is needed. If calculated on the basis of current cocoon price of 50 Yuan/kg, the cost of raw material for producing one ton of raw silk will work out to about 400,000 Yuan. When other manufacturing cost of another 60,000 Yuan is added, the total cost of production for one ton of raw silk would be 460,000 Yuan. Against this, the current market price for one ton of raw silk is hovering around 350,000 Yuan. Thus, there is a loss of over 100,000 Yuan on production of one ton of raw silk.

The filature factories are in a dilemma due to the current situation of higher cocoon price and lower silk price. As companies do not want to sell their silk produce at the current lower price, the stocks of silk are getting piled up in warehouses, and it is affecting their liquidity.

Companies that have huge inventory are facing pressure due to this situation and are suffering heavy losses by selling at lower price. While some smaller factories have resorted to halt production, a few of them are on the verge of collapse.

Fibre2fashion News Desk - China

Must ReadView All

Apparel/Garments | On 21st Feb 2017

Max Fashion targets revenue of Rs 5,000 cr by fiscal 2021

Apparel retailer Max Fashion is mulling to double its turnover to Rs...

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search