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We have experienced a slump in cocoon and silk prices and a dull market over the last months. It has caused the industry-wide concerns. The direct reason was that some enterprises drove up purchase prices to rush buying autumn cocoons irrespective of the guidance of national macro information and high business risks due to the influence of market speculation factors during the autumn cocoon harvest season this year and it has led to current production and operational difficulties.

It should be noted that the two wide price fluctuations this year has damaged the industry interest to some extent and didn’t favor the long-term development of the industry. As a result, cocoon and silk coordination offices and silk associations at various levels should raise high concern and guide enterprises to calmly analysis the market development, do deals rationally, avoid price speculation, decrease the negative impact and maintain the price stability to ensure a healthy development of the silk industry. China National Cocoon & Silk Coordination Office will be closely watching the impact of the price trend on the industry and will take necessary and timely macro-control actions and market regulation measure to maintain the industry development in a stable manner.

Source: China National Cocoon & Silk Coordination Office