According to the commodity market analysis system of Shengyishe, the price of raw silk continued to decline this week (4.8-4.12). As of April 12th, the average price of raw silk in the domestic market was 486950 yuan/ton, a decrease of 2850 yuan/ton or 0.58% compared to the price of 489800 yuan/ton at the beginning of the week; The average market price of dried cocoons is 164000 yuan/ton, a decrease of 1000 yuan/ton or 0.61% compared to the price of 165000 yuan/ton at the beginning of the week.

This week is during holidays such as Zhuang March 3rd and Dai Water Splashing Festival in Guangxi and Yunnan. According to incomplete understanding, some silk reeling enterprises have their workshops on vacation, while most silk reeling enterprises have their workshops on normal production or take compensatory leave. The price of raw silk in the new cocoon season continues to decline, with the majority of buyers and sellers holding prices and observing. The overall trading volume this week was average. This week, the prices of dried cocoons, raw silk, and silk floss have all been reduced to a certain extent overall, but the enthusiasm of manufacturers to purchase goods is average. High quality raw silk for export and domestic sales continues to be sold at high prices, while some 5A-6A grade raw silk in the regular domestic market remains at last week’s prices, while others have decreased slightly. The overall price has slightly decreased compared to last week.

In terms of fresh cocoon listing, spring cocoons in the Guangdong and Guangxi regions continue to be listed. Among them, the purchase prices of spring cocoons in Xuwen, Maoming Huazhou, and Yunfu Luoding regions in Zhanjiang, Guangdong have been basically maintained at around 55-62 yuan/kg recently. The purchase prices of spring cocoons in Yongning, Mashan, and Shanglin regions in Nanning, Guangxi have slightly increased. Based on the quality price, the current purchase price remains around 55-62 yuan/kg. The first batch of spring cocoons in Xincheng region is nearing completion, with the purchase price remaining at around 54-56 yuan/kg. The second batch of spring cocoons is expected to start listing around the 17th of this month, and there will continue to be small batches of spring cocoons listed in the surrounding areas of Yizhou at the same purchase price. There is a slight increase, currently maintained at around 55-59 yuan/kg.

In terms of weaving, as we enter mid April, there continues to be a trend of uneven heating and cooling, and the market reflects that orders for silk and satin varieties with export characteristics and regular domestic sales orders are not satisfactory. After the Qingming Festival holiday, there is also the March 3rd holiday, and the weaving process still maintains the rhythm of picking up goods according to demand.

From the past two weeks, it can be seen that there has been a significant downward trend in raw silk prices since the listing of Spring Cocoon, which objectively reflects that the current downstream demand is not very sufficient, domestic demand is still in the recovery period, and export growth is not significant. Therefore, overall, the industrial chain may face an oversupply situation in the future. Analysts from Business Society believe that Spring Cocoon is about to go public on a large scale, and after the Qingming Festival holiday, it will also usher in the March 3rd holiday. Downstream will still maintain the rhythm of on-demand procurement, and the prices of raw silk and dried cocoons will remain in a weak adjustment market in the short term.