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In CCSE electronic contract market, months from July 2006 to March 2007, especially September 2006, were traded actively. Prices of these months fluctuated at high levels. Based on current situation, later months prices are more probable to fluctuate around the level this week until March.

Physically, after the spring festival, prices of silk yarn and silk fabric continued to rise to seek the balance between supply and demand after a short pause for breath. Now raw silk 20/22D 3A rates around 300,000 yuan per ton. Silk material stocks are small and falling as time goes. Given the lack of new crops entering market in large volume, silk prices are expected to remain uptrend.