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China's cocoon and silk market unlikely to see significant decline
Oct '11
Cocoon and silk prices have declined in China after a rise in the first half of the current year. The price of dry cocoon has declined from 120,000 yuan/ton in the first half to about 95,000 yuan/ton at present.

Similarly, the price of raw silk has fallen from the record high of 400,000 yuan/ton in the first half of 2011 to about 300,000 yuan/ton at present.

In fact, a downward trend has been visible from June, with the price of raw silk falling to about 280,000 yuan/ton by September-end. However, due to the national implementation of storage purchase, the price increased to nearly 330,000 yuan/ton, before stabilizing at the current price of around 300,000-310,000 yuan/ton.

In China, autumn cocoon drying season is nearing an end and hence there would be a significant fall in cocoon production. This will lead to an increase in cocoon supply-demand gap, which will affect the production of reeling enterprises in the next two months of the current year as well as the first half of next year. Thus, cocoon and silk market is unlikely to see significant decline in the coming months.

Fibre2fashion News Desk - China

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