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The cocoon and silk electronic contracts closed much higher in CCSE Wednesday with large volume following the upward tendency. But net position did not be enlarged correspondingly. This indicated that buyers are willing to order silk goods at higher prices.

On the background of the normal silk need from India, a greater demand for silk garments and madeups mixed with cotton, wool or other fibers just not within the restrictive textile categories from the US and the UN are on the advantaged condition and insisted to keep the high price. Trader’s lack of stocks also gives the positive position to mills.

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Physically, the price of raw silk originated from Sichuan Province broke through 210000 Yuan per ton and was quoted at 215000 Yuan, almost as high as silk yarn from Jiangsu and Zhejiang.