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 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Urs Stalder
Sanitized AG

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kerem Durdag
Biovation II LLC

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Madhu Jain
Madhu Jain

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

Pranav Mishra

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

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

April 2017

April 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search