Search
Info Center
Home > Info Center > CCSE Review
Return
ReturnChen Yiqing talks about silk supply-demand and price in the first half of 2005 (1)
Author：
admin
PublishDate：
2005-08-15 16:17:00
Hit：
475
Silk price continuing high results in stimulating production and curbing consumption --Chen Yiqing talking about Supply-demand and price of Cocoon and Silk in the first half of 2005
(Chen Yiqing, expert of Department of Market Operation Regulation under Ministry of Commerce)
Spot price in china Cocoon and Silk Exchange ranged between 47300 Yuan and 59600 Yuan per ton for dried cocoon and 174300 Yuan and 179600 Yuan for raw silk respectively in the first half of 2005.
Electronic contract price from Jan. to June of 2005 averaged 58400 Yuan per ton for Dried Cocoon and 178700 Yuan for Raw Silk (Category A), up 13.84 per cent and 10.17 per cent respectively compared to same period of last year. Dried Cocoon touched high of 64400 Yuan and Raw Silk touched high of 188900 Yuan. Our numbers said the rising price in the first half of this year has not reached the high level. Some thought it operated at a middle level.
Upward trend of cocoon and silk price continued from the beginning of July and has attracted the concern of the industry gradually. According to the primary analysis, the strong export, decreased import, so-so increasing spring cocoon output and conflict of supply-demand created the situation.
Now let me discuss it in more details.
1.Export rose consecutively and global demand kept increasing.
Data from China Customs, real silk goods export totaled 1.755 billion dollars in the first half of 2005, up 22.06 per cent Main items of silk goods increased on export volume, value and average price. Mulberry silk rose 33.94 percent and 48.86 per cent on volume and value respectively. Grey fabric rose 36.79 per cent and 44.28 per cent on export volume and value respectively.
The silk yarn consumption (including long and short fibre) converted from full silk goods export totaled 42710.82 ton, up 13.62 per cent. Among them, silk product exports totaled 13811.55 ton (cocoon not included), up 8.69 per cent; silk fabric export totaled 11306.18 ton, up 34.31 per cent; garments and madeups totaled 21244.85 ton, up 8.02 per cent.
Meanwhile, the silk yarn converted from silk goods imports from Jan. to June of this year totaled 3656.5 ton, down 45.43per cent. Among them, cocoon imports totaled 36.63 ton, up 53.56 per cent. Silk yarn imports 2032.920ton, down 60.93 per cent. Silk fabric imports totaled 1586.95 ton, up 7.67 per cent.
In the first half of 2005, net silk consumption after deducting imports volume totaled 42710.82 ton, up 25.22 per cent. Apparently, the increasing rate of silk consumption converted should owe to the comparatively weak fundamental base of the first half of last year and the sharply decreased import in the first half of this year.
I think the following factors created the fast- increasing export:
(1)Fine export surrounding in global market.
Urgent demanding trend in global market provides the wide space for China silk export.
(2)Textile quotas withdrawn in global market.
China government has withdrawn the examination management on mulberry silk export companies and export quotas management on gray fabric and partly silk yarn products with the pace of Textile quotas withdrawn in global market, which gives China silk export more wide space.
Meanwhile, China silk industry is a comparatively small and centralized market. The consumption level is comparatively high, silk cost and selling price is higher than other textiles. Silk companies show more capability in lowering cost. So silk products did not suffer in USA and the UN’s restriction as other textiles. However, silk exports showed new profit growth. The USA withdrew the quota of real silk knitted sweater at the beginning of this year. According to the statistics of CCCT, real silk knitted garment and silk garment exports to the USA rose 5.14 per cent and 13.32 per cent respectively compared to the same period of last year.
Furthermore, sino-Japan silk trading agreement existing for more than thirty years has been terminated on Jan. 1, 2005. Data from CCCT, filature silk, thrown silk yarn and gray silk fabric exports to Japan rose 556.56 per cent, 28.42 per cent and 16.22 per cent respectively in the first half of this year.
(to be continued)
(Chen Yiqing, expert of Department of Market Operation Regulation under Ministry of Commerce)
Spot price in china Cocoon and Silk Exchange ranged between 47300 Yuan and 59600 Yuan per ton for dried cocoon and 174300 Yuan and 179600 Yuan for raw silk respectively in the first half of 2005.
Electronic contract price from Jan. to June of 2005 averaged 58400 Yuan per ton for Dried Cocoon and 178700 Yuan for Raw Silk (Category A), up 13.84 per cent and 10.17 per cent respectively compared to same period of last year. Dried Cocoon touched high of 64400 Yuan and Raw Silk touched high of 188900 Yuan. Our numbers said the rising price in the first half of this year has not reached the high level. Some thought it operated at a middle level.
Upward trend of cocoon and silk price continued from the beginning of July and has attracted the concern of the industry gradually. According to the primary analysis, the strong export, decreased import, so-so increasing spring cocoon output and conflict of supply-demand created the situation.
Now let me discuss it in more details.
1.Export rose consecutively and global demand kept increasing.
Data from China Customs, real silk goods export totaled 1.755 billion dollars in the first half of 2005, up 22.06 per cent Main items of silk goods increased on export volume, value and average price. Mulberry silk rose 33.94 percent and 48.86 per cent on volume and value respectively. Grey fabric rose 36.79 per cent and 44.28 per cent on export volume and value respectively.
The silk yarn consumption (including long and short fibre) converted from full silk goods export totaled 42710.82 ton, up 13.62 per cent. Among them, silk product exports totaled 13811.55 ton (cocoon not included), up 8.69 per cent; silk fabric export totaled 11306.18 ton, up 34.31 per cent; garments and madeups totaled 21244.85 ton, up 8.02 per cent.
Meanwhile, the silk yarn converted from silk goods imports from Jan. to June of this year totaled 3656.5 ton, down 45.43per cent. Among them, cocoon imports totaled 36.63 ton, up 53.56 per cent. Silk yarn imports 2032.920ton, down 60.93 per cent. Silk fabric imports totaled 1586.95 ton, up 7.67 per cent.
In the first half of 2005, net silk consumption after deducting imports volume totaled 42710.82 ton, up 25.22 per cent. Apparently, the increasing rate of silk consumption converted should owe to the comparatively weak fundamental base of the first half of last year and the sharply decreased import in the first half of this year.
I think the following factors created the fast- increasing export:
(1)Fine export surrounding in global market.
Urgent demanding trend in global market provides the wide space for China silk export.
(2)Textile quotas withdrawn in global market.
China government has withdrawn the examination management on mulberry silk export companies and export quotas management on gray fabric and partly silk yarn products with the pace of Textile quotas withdrawn in global market, which gives China silk export more wide space.
Meanwhile, China silk industry is a comparatively small and centralized market. The consumption level is comparatively high, silk cost and selling price is higher than other textiles. Silk companies show more capability in lowering cost. So silk products did not suffer in USA and the UN’s restriction as other textiles. However, silk exports showed new profit growth. The USA withdrew the quota of real silk knitted sweater at the beginning of this year. According to the statistics of CCCT, real silk knitted garment and silk garment exports to the USA rose 5.14 per cent and 13.32 per cent respectively compared to the same period of last year.
Furthermore, sino-Japan silk trading agreement existing for more than thirty years has been terminated on Jan. 1, 2005. Data from CCCT, filature silk, thrown silk yarn and gray silk fabric exports to Japan rose 556.56 per cent, 28.42 per cent and 16.22 per cent respectively in the first half of this year.
(to be continued)
