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This week we can see further sharply drop in cocoon and silk prices. Representative raw silk 3A price fell to about 300,000 yuan per ton at weekend, though there were enquiries from weaving mills.

In the physical market, more and more silk mills curtail production in response to high cost. In Sichuan’s Nanchong, approximately forty per cent of silk weaving machines have stopped production. Mainly because some silk reeling mills stopped production due to a material gap of about three months, Chongqing’s silk exports in Feb. set three years’ lowest of 2.6364 million US dollars, against 5.9875 million US dollars of last month.

In CCSE electronic contract market, dried cocoon and raw silk prices dropped significantly. Selling side seems to dominate the market this week. There are quite different views in the market toward the price after spring crop. Quantity and quality of spring silkworm eggs, climate, demand and other factors are of much uncertainty.