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

Textiles | On 7th Dec 2016

New Texprocil chairman bats for increased UPI adoption

Ujwal Lahoti, the new Cotton Textile Export Promotion Council...

RBI Governor Urjit Patel addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

Defying expectations, RBI keeps repo rate unchanged

Defying market expectations, the Monetary Policy Committee (MPC) of...

The new OJ 59/1 B. Courtesy: Karl Mayer

Textiles | On 7th Dec 2016

Karl Mayer unveils new LACE.EXPRESS model for apparel

Germany’s leading textile machinery firm, Karl Mayer, has launched a...

Interviews View All

Rajiv Sirohi

‘Portugal is taking away a major share of the mill made sector.’

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

December 2016

December 2016

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


Browse Our Archives


Advanced Search