India cuts customs duty. Raw silk prices surge

02 Mar '11

2 min read

Recently, in the union budget announced by the Indian Finance Minister, the basic customs duty of Indian raw silk (not thrown) was brought down from 30 percent to 5 percent.

The news is undoubtedly good news for China's domestic silk industry.

Cocoon and silk markets in Guangxi province reacted positively on March 1, a day after the announcement.

Most nearby contract prices touched 390,000 Yuan / ton, a sniff away from the psychological mark of 400,000 Yuan mark.

Most mid and forward contracts hit daily upper limit. Trade volume of raw silk March and September contract enlarged and open interest was restored.

Nearby raw silk contract 031 rose 9,100 Yuan / ton to close at 394,100 Yuan, up 2.36 percent, the most active contract 033 rose 14,100 Yuan / ton to close at 396,600 Yuan / ton, up 3.69 percent.

September contract hit upper limit to grow by 10,700 Yuan / ton and closed at 365,900 Yuan / ton.

Dry cocoon market remained bullish, all contracts closed higher with strong support from March contract of raw silk. Dry cocoon March contract 033 rose 5,900 Yuan to close at 124,200 Yuan / ton, to break 120,000 Yuan mark.

September contract 093 too ascended 1,500 Yuan to close at 103,500 Yuan / ton.

Fibre2fashion News Desk - China

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