Guangxi cocoon & raw silk prices rally

18 Mar '11

2 min read

Continuing the bullish trend, Guangxi cocoon and silk market closed at higher prices on March 17. Some contracts including nearby cocoon and silk contracts, closed at historically high prices.

Nearby week dry cocoon contract was at a new high, closing above 120,000 Yuan per ton while nearby week raw silk contract closed above 390,000 Yuan per ton.

Dry cocoon March contract 033 remained unchanged for second consecutive day while May contract 053 rose 100 Yuan, closing at 108,400 Yuan. September contract 093 fell slightly, closing at 105,200 Yuan, a decline of 700 Yuan.

In raw silk market, after a big sluggish period, new highs were witnessed in most contracts. Nearby week March contract 033 rose 300 Yuan, closing at 393,300 Yuan but orders fell.

April contract 043 rose 2100 Yuan, closing at 387,900 Yuan, September contract 093 fell 200 Yuan, closing at 356,400 Yuan.

As the trade turnover of the just concluded "2011 China Spring Silk Trade Fair" substantially increased compared to 2010 Spring Fair, main reason for this rally is high prices of domestic cocoon and silk.

At present, domestic cocoon and silk prices are rising and are expected to continue this upward trend. Because of these signals, foreign traders are bullish and eager to sign new contracts.

In addition to that, Indian Government has proposed to reduce import duty on non-twisted raw silk from 30 percent to 5 percent from April 1 in its budget for 2011-12.

This proposal and indication boosted the moral of market assuring a good environment for cocoon and silk industry.

Fibre2fashion News Desk - China

More Textiles News - China...