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ReturnSpecial warning from China National Cocoon & Silk Coordination Office(2)
Author：
admin
PublishDate：
2007-01-26 15:50:00
Hit：
357
Date:Jan. 26,2006
The Office started taking control measures during the end 2006 after earnestly hearing and studying opinions from all sides. Currently, parts of state reserves have been taken into warehouses. Raw silk which been bought through the electronic market of China Cocoon & Silk Exchange are mostly from Sichuan Langrui Silk Co.,Ltd., Xiangzhou Jialing Silk Co.,Ltd., Ankang Bashan Baoye Silk Co.,Ltd. And Shanxi Ziyang Kanghong Cocoon & Silk Co.,Ltd.
According to enterprises in the country wide, cocoon and raw silk are currently stocked in the silk-reeling process, while little stocked in downstream enterprises. Previous prices returned to an acceptable and reasonable level that promoted transaction and consumption, but recently some enterprises spread rumors and take heavy speculation in the electronic markets irrespective of the interests of the industry, which caused downstream enterprises and foreign traders don’t dare to purchase products or take wait-and-see attitude. The situation doesn’t favor the production and operation of the industry.
The main reason for the heavy speculation is that a large amount of silk enterprises which don’t have cocoon production bases rushed buying autumn cocoons at very high prices irrespective of the guidance of national macro information, a few enterprise among them earned much from it, and then induced large selling, caused the industry-wide panic and earned profits.
So the office has many times pointed out vitals of some speculators and warned not to follow others blindly in released information and by incoming phone calls from enterprises.
The next step of the office is to start emergent program for macro-controls according to< Raw Silk State Reserve Rules>, tighten macro controls and ensure the stabilization for prices and market in order to curb over-speculation and create a good environment which promotes restoring demand.
Source: China National Cocoon & Silk Coordination Office
The Office started taking control measures during the end 2006 after earnestly hearing and studying opinions from all sides. Currently, parts of state reserves have been taken into warehouses. Raw silk which been bought through the electronic market of China Cocoon & Silk Exchange are mostly from Sichuan Langrui Silk Co.,Ltd., Xiangzhou Jialing Silk Co.,Ltd., Ankang Bashan Baoye Silk Co.,Ltd. And Shanxi Ziyang Kanghong Cocoon & Silk Co.,Ltd.
According to enterprises in the country wide, cocoon and raw silk are currently stocked in the silk-reeling process, while little stocked in downstream enterprises. Previous prices returned to an acceptable and reasonable level that promoted transaction and consumption, but recently some enterprises spread rumors and take heavy speculation in the electronic markets irrespective of the interests of the industry, which caused downstream enterprises and foreign traders don’t dare to purchase products or take wait-and-see attitude. The situation doesn’t favor the production and operation of the industry.
The main reason for the heavy speculation is that a large amount of silk enterprises which don’t have cocoon production bases rushed buying autumn cocoons at very high prices irrespective of the guidance of national macro information, a few enterprise among them earned much from it, and then induced large selling, caused the industry-wide panic and earned profits.
So the office has many times pointed out vitals of some speculators and warned not to follow others blindly in released information and by incoming phone calls from enterprises.
The next step of the office is to start emergent program for macro-controls according to< Raw Silk State Reserve Rules>, tighten macro controls and ensure the stabilization for prices and market in order to curb over-speculation and create a good environment which promotes restoring demand.
Source: China National Cocoon & Silk Coordination Office
